The basic argument of this paper is that successful contribution of ICT to development goals is partly dependent on the nature of the cooperation between partners. Thus if there is a need to assess the contribution of ICT, then one needs to look further than just the basic quantitative measures and include cooperation issues as criteria for success. The purpose of the research reported in this paper was therefore to take one step closer towards a framework of cooperation issues in so-called BOP projects, specifically in the ICT arena, with the ultimate aim of developing a way to assess factors that may present a risk to the success of these projects. This framework could serve as the foundation for further research into developing a diagnostic instrument for this purpose. Presentation by Gilbert Silvius for paper "Cooperation issues in developing the BOP market", AMCIS Proceedings , San Francisco, USA, August 2009.

1. Cooperation issues in
developing the BOP market
Kobus Smit
Anand Sheombar
Gilbert Silvius
Utrecht University of Applied Science
The Netherlands

2. 6,776,034,371

3. World population

4. 60

5. Bottom of the Pyramid

6. Bottom of the Pyramid

7. 5,000,000,000,000

8. Estimated BOP market

9. The BOP & ICT Research Project
How can Multinational Information and
Communication Technology companies (ICT
MNCs) gain benefit from entering the Bottom
of the Pyramid (BoP) market in a commercial
successful and sustainable way?
And what could be the opportunities in the BoP
market for multinational ICT companies?

10. Why BoP as a Market?
 better meet their needs
 increase their productivity and incomes
 empower their entry into the formal economy

11. A Mindshift …

12. … also in Business
BOP 1.0 BOP 2.0
BOP as consumer BOP as business partner
Deep listening Deep dialogue
Reduce price points Expand imagination
Redesign packaging, extend distribution Marry capabilities, build shared commitment
Arm’s length relationships mediated by NGOs Direct, personal relationships facilitated by NGOs
“Selling to the Poor” “Business Co-Venturing”
Table 1: First Generation BOP Strategy compared with the new BOP (2.0) strategy (Hart et al., 2008)

13. Three elements...

14. Research Questions
 What are the difficulties that ICT MNCs
experience in their cooperation with partners
in their efforts to reach the BOP market;
 And more specifically, how could these
observed issues be categorized

15. Local
MNC for-profit
Local organisation
ICT
Non-profit
organisation

16. Partnerships are…
“an association between two or
more persons, groups, or
organizations who join together
to achieve a common goal that
neither one alone can
accomplish”
(Mullinix, 2002:78)

17. Partnerships are…
 Important
 Have some advantages
 Need to be managed

18. The Research
– 10 Cases
 10 Cases
 M-Pesa
 Village Phone in Uganda
 Village Connection
 Unlimited Potential
 Public-private partnerships - Tapping into innovation
 Public-private partnerships - ICT & media
 i-Community in South Africa
 World ahead (e.g. Classmate PC)
 Digital Bridge
 Communication for all

19. The Research
– Sources of Evidence
 Interviews
 Archival records
 Documents

20. The Research
- Analysis
 USED basic analysis techniques of grounded
theory
 NOT develop grounded theory

21. Findings
- Cooperation Issues
 Driving force factors
 Skill factors
 Input-Output factors
 Socio-cultural factors
 Systems factors
 Trust factors

22. Driving Force Factors
 Driving Force factors refers to problems that
occur as a result of misaligned fundamental
driving forces that shape the goals, purposes
and process of ICT projects in developing
countries, both from the perspective of the ICT
MNC as well as that of local partners

23. Skills Factors
 ICT MNCs tend to have unrealistic
expectations about local skills and knowledge
on a variety of topics ranging from IT skills and
knowledge to managerial skills and
knowledge.

24. Input-Output Factors
 Input-Output factors refer to difficulties that
may arise as a result of unequal investments
by partners in projects, as well as unequal
gains by partners from their projects.

25. Socio-cultural Factors
 Difficulties related to social & cultural
differences

26. System Factors
 Difficulties relating to the integration of
systems, as well as the eventual use thereof

27. Trust Factors
 Includes issues related to expectation
management as well as business desirability
bias

28. Factors Examples of Relevant Literature
Driving force Different foci on results versus process (Kumar et al., 2005)
factors Technocratic approach of MNCs (Chio, 2005)
Over-emphasis on "top-down, closed access and 'expert' driven" research
(Gurstein, 2005)
Bottom-up approach that builds on indigenous knowledge (Simanis et al.,
2008b)
Failure to continuously monitor the relationship (Seelos and Mair, 2007)
Skill factors Becoming and staying aware of the variety of resources, e.g. Prahalad
(2005), Simanis et al. (2008a) and Jenkins (2007)
Input-Output Sustainable business (Prahalad, 2005, Simanis et al., 2008b)
factors Business partnerships related to intellectual property and patents
(Matson, 2006)
Socio-cultural Social embeddedness (London and Hart, 2004)
factors Culture shock (Oberg, 1960, Marx, 2001)
U-curve theory e.g. Lysgaard and (Ward et al., 1998)
Systems factors Integration of systems (Butt et al., 2008)
Trust factors Trust as a relevant factor (Das and Teng, 2001).
"Social desirability bias" (Randall et al., 1993)

29. The road ahead
 Limitations
 Future research
 Recommendations