Imagine the Future...

1. Emergent DemocracyEnabling An eGovernance EcosystemRajesh JainNetcore SolutionsTel: +91 (22) 5662 8000 Fax: +91 (22) 5662 8134Email: rajesh@netcore.co.inPersonal Weblog: http://www.emergic.orgCompany Website: http://www.netcore.co.in

2. I have a vested interest in the future, because I plan on living there. - Neil Gershenfeld (MIT Media Lab)

3. Imagine the Future... • Growth of 10%+ • Double Per Capita Income to Rs 25,000 p.a. in 3-5 years • Employment Generation • 100% Literacy and Computer Literacy • Leadership in IT • Transparency and Accountability in Governance • Increase People's Self-belief and Self-confidence • Entrepreneurial and Community-driven initiatives

4. ...and Fold the Future In • Enable Emergent, Democratic, eGovernance Ecosystem • Emergent: bottom-up; whole is greater than sum of parts • Democratic: Built with, for people; 2-way information flow • eGovernance: eServices for Citizens, Businesses; SMART • Ecosystem: self-sustaining, replicable, viable • A Connected Computer accessible to every employee and family • Mass-Market Tech Utility (via Takniki Pragati Kendras) • Intelligent, Real-Time Governance

5. My Beliefs • Biggest Force is “10X Vision” • Imagine a different future, and then go out and build it • Technology creates discontinuities and leapfrog opportunities • Emerging Markets: Technology's next markets • Bridge digital divide; Target bottom of the pyramid • 4 billion users and 25 million SMEs globally • Needed: low-cost, affordable solutions, with minimal R&D costs • Lag hardware by one generation; use latest software and communications • Mass Access to Computing and Internet can enable the New India • A passport to a better life, a growing business; hope for better tomorrow • Provide growth and employment opportunities • We have to build the New India

6. Key Building Blocks: 3 L’s + 3 W’s • Low-cost Computing: The Rs 5,000 PC • Linux: Open-source software base • Local Language: Beyond English • WiFi: Open spectrum for connectivity • Web Services: eBusiness Applications Platform • Weblogs: Harness tacit knowledge; voices from within

7. A Vision for a Digitally Bridged Society Mass-Market Tech Utility

8. The ICT-Digital Divide Story So Far • No shortage of ideas or success stories • Gyandoot, Warna, Bhoomi, eSeva... • Need, Vision and Will are there • In many cases, so are the Resources • Yet: Why isn't India Digitally Bridged by now? • Something is missing • Business Model? Scalability? Sustainability? Replicability? Commercial Viability?

9. The Problems • Thinking: Pilots, Prototypes, Demos, Showcases • Solutions are being created in silos, in “niches” • Our vision is too narrow and small • Mindset is focused on incrementalist innovation … • … when the need is for “disruptive innovations” • We are not thinking in terms of “mass-market”... • ... or in terms of replicability for millions The Real Digital Divide is between Envisioners, Technologists and Implementers

10. What's Needed in ICT Solutions • Mass-Market: for tens of millions of people • Scalable: can be replicated rapidly • Emergent: bottom-up, entrepreneur-driven • Low R&D Costs: don't recreate but aggregate • Extremely Affordable: we are still a poor country • Technologically forward-looking: nothing less! • Leapfrog: more than just catch-up • Platform-orientation: to enable an ecosystem • Commercially Viable: a business model

11. Vision Redux: Digitally Bridged MP • A connected computer accessible to every family • Everyone is literate and computer-literate • Can email, browse, search, compose letters, fill forms • Computing taught and available in every school • All Citizens have access to eServices for government interactions Technology as a Utility for the Bottom of the Pyramid

12. Four Characteristics of a Utility • Commonplace • It is ubiquitous, accessible and virtue • We only know of its presence when it doesn't work • Affordable • Payment is by use, on a "subscription" basis • Reliable • It does not "crash" • Mass Distribution Framework • There is a Network, which lets the utility be available everywhere

13. To build the New India and New MP, we need a Tech Utility. To make this a reality and to bridge the digital divide, we need Disruptive Innovations.

14. The Great Leap: Driving Innovation from the Base of the Pyramid • Disruptive Innovations compete against nonconsumption – that is, they offer a product or service to people who would otherwise be left out entirely or poorly served by existing products and who are therefore quite happy to have a simpler, more modest version of what is available in the high-end markets. - Stuart Hart and Clayton Christensen (Sloan Management Review)

15. 5KPC as Disruptive Innovation • Imagine the Rs 5,000 Personal Computer (5KPC) • 5KPC as a network device (like cellphone, TV) • Recycle older computers as desktop PCs • Can optionally use TV as monitor • Sealed Endpoint – zero-maintenance • Centralised storage and computing (Thick Server) • WiFi to extend 5KPCs into neighbourhood areas • Targets “Non-consumption” The 5KPC is at the heart of the Tech Utility

16. The Tech Utility Challenge • 10 Basic Services for a small, fixed, monthly fee • Mandi, Grievance Redressal, Forms, Certificates • Khasra, Exam Results, Email and Internet Access • Literacy Programs, Training, Health information • Additional services will cost extra • Free: Computers for local school • A Platform for developing other services • Easy-to-use interfaces • Simple to manage and support remotely

17. The Solution: TeleInfoCentresTakniki Pragati Kendras • Computer and Communications Centre • Cluster of 5 or more computers (can be old PCs also) • Email; Instant Messaging; Web Browsing; Printing • Server-Centric Computing and Storage • Support for Local Languages • Content and Applications Mirrored on Local Server • Software Distribution; Last Mile Bridge • Hub-and-Spoke Extensions • Neighbourhood Wireless Network • Enabling eCommerce / eGovernment / eServices

18. The TeleInfoCentre • 1 Server (Rs 30,000) + 4 Thin Clients (Rs 10,000 each) • Software, LAN, Scanner, Printer, Webcam (Rs 25,000) • WAN Connectivity: Dial-up, WiFi, WLL • WiFi Hub: Rs 7,000; Each Card: Rs 4,000 • Also: TV, Radio, Fax Machine+Copier, Phone (PCO) • Power: UPS or Car Battery (Rs 5,000) or Solar Power • Powered by Linux Terminal-Server Software • All Basic Apps: Browser, Email, Office suite, IM • Support for English and Hindi • Entrepreneur-driven (by Prerak)

19. What else can a TeleInfoCentre do? • Gyandoot+eChoupal+Jan Shikshan Kendras, rolled into one • Digital Library: Content on local hard disks, updated periodically by CD (until high-speed Net access is available) • A Citizen Community Weblog to discuss priorities/initiatives • Instant Business Office for businesses / entrepreneurs • Wireless Access Point: to enable 5KPCs elsewhere in the vicinity (homes, hospital) to connect into network • Software Applications locally: pay-per-use, for accounting, agriculture, village planning • Storage Space for Documents: land records, certificates, etc. • Microcredit Centre (via Smart Cards); Marketplace for local crafts • Classifieds, Local News, Feedback on Govt Schemes…

20. Solution Differentiators • Rs 5,000 computers vs Rs 50,000 computer • Linux/Open-Source vs Proprietary software • TeleInfoCentre in each village vs Kiosk across many • Wireless (WiFi/WLL) vs Wired connectivity • English and Hindi vs English only • Multi-functional vs Uni-functional • User-generated content vs top-down broadcast • Fixed cost for basic services vs pay-per-service

21. The Economics • Startup-costs for 5-computer centre: Rs 1,20,000 • Monthly running costs: Rs 4,500 (salary, connectivity, maintenance) • 3-year TCO: about Rs 2,80,000 Monthly cost: Rs 8,500 • 1 TeleInfoCentre supports 1,500 people (350 families) • Cost per family: Rs 25 per month (or lower) How to make this work?

22. How much is Rs 25 per month? • MP Per Capita Income: Rs 12,000 p.a. (Rs 1,000 p.m.) • Avg Income for family of 4: Rs 4,000 p.m. • At the bottom-end, take half of this: Rs 2,000 p.m. Will this family spend Rs 25 per month / Re 1 daily?

23. They will spend Rs 25 per month IF • It can offer hopes of additional income (growth in livelihood) • It can remove pain from their lives (government interactions) • It can improve their skillsets (learn to do things better, retraining) • It can make them more productive (agriculture, crafts) • It can offer their children a brighter future (education, jobs) • It can provide them a voice to and response from government within a specified time period

24. Can this Rs 25 figure be reduced? • Yes, by offering additional services at TeleInfoCentre • Advertising: a platform for rural marketing • eCommerce: can aggregate buyers to lower prices • Data Entry (since there are multiple computers now) • Also consider: • Existing older PCs can be re-used as “thin clients” • Computer Costs amortized over 3 years only • Schools get computers for free

25. Make Colleges part of the Ecosystem • Students can help provide Linux support • Appropriate projects for final-year engineering students • Others help in content development and creating of training modules • Creates an IT talent base for businesses • Leadership in open-source software development • An “Innovations Fund/Contest” - for the best “Stimulate the Creativity of the Young Human Mind”

26. Next Steps • Set up TeleInfoCentres in selected villages • Bottom-up demand-based model like EGS • Apply the 80-20 rule: 20% services; 80% impact • Leverage MP's strength: Rapid Decentralised Execution • A platform for add-on services: content and applications • Show entrepreneurs a business model (“franchise”) • Make it self-sustaining; No government subsidies • Target scale-up: 10,000 TeleInfoCentres in a year and take it to every village in the next 5 years Ambitious? Yes. Doable? Yes. We are the government, right?

27. Unleash the Power within Intelligent, Real-Time Governance

28. A Government is like a large, multi-locational EnterpriseThink of an Intelligent, Real-Time Enterprise......and apply these ideas to create an Intelligent, Real-Time Government

29. The Intelligent, Real-Time Enterprise • [A real-time enterprise is] a company that uses Internet technology to drive out manual business processes, to eliminate guesswork, and to reduce costs. • The key feature of a real-time enterprise is spontaneous transaction flow. • Ray Lane, General Partner, Kleiner Perkins

30. IRTE Characteristics • Computing and Communications available to every employee • Superior Information Availability across the Value Chain • Streamlined Business Processes using the Web • Lower Inventory through improved Analytics • Data entered only Once • Single Interface to all Applications

31. Source: E-business: Roadmap for Success by Ravi Kalakota

32. The Intelligent, Real-Time Government • Computing and Communications available to every employee • Superior Information Availability across the Value Chain (state, panchayats) • Streamlined Business Processes (back-end automation) using the Web • Lower Inventory (Delays) through improved Analytics • eProcurement, to ensure transparency and speed • Data entered only Once • Single Interface to all Applications “A corporate atmosphere with a social bias”

33. The 4 Pillars of IRTG Architecture • Messaging and Internet Access for all employees • Computing for all • Collaboration and Knowledge Management • Business Process Automation

34. Messaging • Email ID for all • Instant Messaging • Internet access at every location • Global Address Book • Integration with Cellphone/SMS for real-time alerts

35. Computing for All • A Rs 5,000 PC for every employee • Reuse older, existing computers • Limited base set of applications on desktops • Email, Browser, Office suite, IM • Based on Linux and Open-Source • Support for English and Hindi • Mandatory Computer Training

36. Collaboration and Knowledge Management • Make people individually more productive • Make teams work together more efficiently • Support Decision-making and Workflow • Digital Dashboard: one screen to rule them all • Harnessing Tacit Knowledge through Weblogs

37. Business Process Automation • Manage Money (Accounting) and Citizens/Businesses (CRM) • Focus on the core processes and “events” • Exception-Handling, not routine management • Two-way information flow (state <-> local bodies) • RosettaNet for standardising Industry Interactions • Integrated Databases (“only handle information once”) • eProcurement – centralised, electronic purchasing • Involve engineering college students and local software cos. for applications development • Software: Web Services and Open-source based

38. The Result: Emergent Democracy • MP's Digital Nervous System • A Digital State in 2-3 years • Reduced information asymmetry between administration and citizenry • Will increase transparency and accountability, and reduce corruption • Government functioning like efficient enterprises • Limited Legacy, so can Leapfrog other states • Creates a local IT infrastructure / ecosystem • Real-time feedback on schemes and problems • SMART Governance

39. The Economics • Technology Cost: Rs 500-700 per person / month • If employees can be made 10% more productive, it will payback immediately How do we make this happen?

40. Execution • Think Big, Start Small and Scale Fast • Will+Vision, and Entrepreneurial Thinking • Dan Bricklin's Comment “In big business, when you need to cross a river, you simply design a bridge, build it, and march right across. But in a small venture, you must climb the rocks. You don't know where each step will take you, but you do know the general direction you are moving in. If you make a mistake, you get wet. If your calculations are wrong, you have to inch your way back to safety and find a different route. And, as you jump from rock to slippery rock, you have to like the feeling.”