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Generating Income for Telecentres: [Bridging] E-Commerce Services to Small and Medium Enterprises (SMEs)
Jimena
Betancourt
Coordinación TIS Talks
jbetancourt@telecentre.org
@jimebeta
1.
2.
3.
Building Knowledge
Finding Solutions and
Partners
Planning and Managing
for Innovation,
Technology and
Sustainability
THREE PHASES:
2. Finding Solutions and Partners for
Technology, Innovation and Sustainability
• Identify partners to develop distribution channels of ICT
products and services such as e-health, distance education,
telecommunication solutions and many more
• Identify system management solutions based on open
applications
• Identify solutions to lower hardware cost
• Identify partners to develop applications for greater impact
in the communities served by telecentres
Goals:
Daniel Salcedo
Founder
OpenEntry
OpenEntry.com
Generating Income for Telecentres
By Enabling Them to Provide
E-commerce Services to Local
Small and Medium Enterprises (SMEs)
by Daniel Salcedo, Founder & CEO,
dsalcedo@OpenEntry.com
•  Telecentres are a noble approach to
democratizing the benefits of ICT
•  Most struggle for sustainability precisely
because they target users of limited means
•  Key is offering services to local small and
medium enterprises (SMEs) that can afford
to pay enough to subsidize usage by the rest
of users
Telecentre Sustainability
Early Promise of E-commerce
•  Poor people generally produce stuff to sell
or work for somebody who does. More
efficient markets help the poor as producers
as well as consumers.
•  Development experts in the 1990’s, “level
the playing field for the little guy”
•  Bill Gates – disintermediation will enable
“friction free capitalism”
Everybody thought it was a technical
challenge of getting SMEs online
•  Complicated - needed to know HTML or hire an
expert or buy software
•  Laborious – had to hand code every catalog page
instead of pulling from a database
•  Expensive – own domain and hosting, credit card
payment required
•  English required
•  Logistics of international payment and shipping
Even if a SME managed to build a
beautiful catalog…
•  Buyers couldn’t find it among the billions of
websites on the Internet
•  Even if they did, they wouldn’t trust it
•  So, besides the technical obstacles, the
main challenge of e-commerce is
visibility, credibility, and trust
Recent Advances Change Everything
•  Proliferation of low cost devices (mobile
phones, netbooks, tablets) greatly expands
the hardware choices for Internet access
•  Internet costs continue to drop while its
reach/speed increase. Corporations now offer
powerful "cloud computing" services
•  Social networking services enable millions to
publish their information with images and
demonstrate the power of trusted networks
OpenEntry is a Development Organization
•  Mission – to help artisans and SMEs to
benefit from e-commerce
•  Support from World Bank, USAID, IDB,
Rockefeller, Oracle, eBay, individuals, more
•  Developed an e-commerce platform for
artisans and SMEs worldwide
Free Catalogs in 44 Countries on
Google Cloud Computing
•  Gmail - account security
•  Docs/Drive – information storage
•  Picasa - image storage
•  Translate – instructions in 57 languages
•  Checkout - also PayPal, 2Checkout
•  Apps Engine - execute programs on
powerful/reliable Google severs
•  Android - offline mobile operation
Catalog Features
•  Build in one hour from any computer or
smart phone
•  Multi-lingual instructions and output
•  Personalize with own banner/logo, choice of
templates, fonts, colors
•  Enabled for credit cards or Request for Quote
•  Live User Support, chat from Nepal
•  FREE (100 products), $200/year for 1000
products and more catalog features
Example Catalogs
Selected from Implementations
in 45 countries
OpenEntry.com/Catalog
Youtube video of creating a catalog
www.youtube.com/watch?v=170FwlhdInI&feature=player_embedded
(three minutes)
To build your own free catalog, go to
Catalog.OpenEntry.com
However, even if a SME builds a
beautiful catalog…
•  Buyers can’t find it among the billions of
websites on the Internet
•  Even if they do, they won’t trust it
•  The main challenge of e-commerce is
visibility, credibility, and trust
OpenEntry Network Markets
•  Any high profile business network
•  Chamber of Commerce
•  Export Promotion Agency
•  Industry Association
•  Trade Show
•  Aggregates the catalogs of all its members (large &
small) into a network market
•  Generating visibility, credibility, trust
•  Amazon.com EC2 Cloud Computing Facility enables
scaling for mainstream business networks
Example Network Markets
OpenEntry.com/Network+Market
Does it Work? http://goo.gl/EWd4b
Does it Work?
http://goo.gl/EWd4b
20
Generating Income for Telecentres: [Bridging] E-Commerce Services to Small and Medium Enterprises (SMEs)
UNDP Conclusions
•  The largest impact of implementing this “pro-poor”
e-commerce approach was on income and
employment.
•  Firms using it reported jobs directly attributable to
on-line promotion . . . 3918 women
•  A relatively inexperienced group of young IT
professionals could, with the proper tools, create
employment for themselves while providing e-
commerce services to local SMEs.
Additional Considerations
•  Don’t need credit card payments – for every
$1 transacted online, $4 are influenced by the
Internet
•  Can start with local cash on delivery sales,
2CheckOut.com works everywhere
•  Most international sales are B2B
•  Shipping easier now - consolidated shipments
can cut costs by 80%
•  100 million SMEs will need help moving
online in next 10 years
•  Women and youth entrepreneurs earn
income building catalogs for local SMEs
•  Modest marginal cost of including e-
commerce in projects for youth, women,
employment, trade
Potential Impact Huge Compared to Costs
Opportunity for Telecentres
•  Most SME owners are busy running their
businesses and often not proficient with
computers
•  OpenEntry enables telecentres to offer paid
services such as training, catalog setup and
maintenance, and banner/template design
•  SMEs will also pay telecentres for the use of
computers and digital cameras
Generating Income for Telecentres
By Enabling Them to Provide
E-commerce Services to Local
Small and Medium Enterprises (SMEs)
by Daniel Salcedo, Founder & CEO,
dsalcedo@OpenEntry.com
Thank You!

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Generating Income for Telecentres: [Bridging] E-Commerce Services to Small and Medium Enterprises (SMEs)

  • 3. 1. 2. 3. Building Knowledge Finding Solutions and Partners Planning and Managing for Innovation, Technology and Sustainability THREE PHASES:
  • 4. 2. Finding Solutions and Partners for Technology, Innovation and Sustainability • Identify partners to develop distribution channels of ICT products and services such as e-health, distance education, telecommunication solutions and many more • Identify system management solutions based on open applications • Identify solutions to lower hardware cost • Identify partners to develop applications for greater impact in the communities served by telecentres Goals:
  • 6. Generating Income for Telecentres By Enabling Them to Provide E-commerce Services to Local Small and Medium Enterprises (SMEs) by Daniel Salcedo, Founder & CEO, dsalcedo@OpenEntry.com
  • 7. •  Telecentres are a noble approach to democratizing the benefits of ICT •  Most struggle for sustainability precisely because they target users of limited means •  Key is offering services to local small and medium enterprises (SMEs) that can afford to pay enough to subsidize usage by the rest of users Telecentre Sustainability
  • 8. Early Promise of E-commerce •  Poor people generally produce stuff to sell or work for somebody who does. More efficient markets help the poor as producers as well as consumers. •  Development experts in the 1990’s, “level the playing field for the little guy” •  Bill Gates – disintermediation will enable “friction free capitalism”
  • 9. Everybody thought it was a technical challenge of getting SMEs online •  Complicated - needed to know HTML or hire an expert or buy software •  Laborious – had to hand code every catalog page instead of pulling from a database •  Expensive – own domain and hosting, credit card payment required •  English required •  Logistics of international payment and shipping
  • 10. Even if a SME managed to build a beautiful catalog… •  Buyers couldn’t find it among the billions of websites on the Internet •  Even if they did, they wouldn’t trust it •  So, besides the technical obstacles, the main challenge of e-commerce is visibility, credibility, and trust
  • 11. Recent Advances Change Everything •  Proliferation of low cost devices (mobile phones, netbooks, tablets) greatly expands the hardware choices for Internet access •  Internet costs continue to drop while its reach/speed increase. Corporations now offer powerful "cloud computing" services •  Social networking services enable millions to publish their information with images and demonstrate the power of trusted networks
  • 12. OpenEntry is a Development Organization •  Mission – to help artisans and SMEs to benefit from e-commerce •  Support from World Bank, USAID, IDB, Rockefeller, Oracle, eBay, individuals, more •  Developed an e-commerce platform for artisans and SMEs worldwide
  • 13. Free Catalogs in 44 Countries on Google Cloud Computing •  Gmail - account security •  Docs/Drive – information storage •  Picasa - image storage •  Translate – instructions in 57 languages •  Checkout - also PayPal, 2Checkout •  Apps Engine - execute programs on powerful/reliable Google severs •  Android - offline mobile operation
  • 14. Catalog Features •  Build in one hour from any computer or smart phone •  Multi-lingual instructions and output •  Personalize with own banner/logo, choice of templates, fonts, colors •  Enabled for credit cards or Request for Quote •  Live User Support, chat from Nepal •  FREE (100 products), $200/year for 1000 products and more catalog features
  • 15. Example Catalogs Selected from Implementations in 45 countries OpenEntry.com/Catalog
  • 16. Youtube video of creating a catalog www.youtube.com/watch?v=170FwlhdInI&feature=player_embedded (three minutes) To build your own free catalog, go to Catalog.OpenEntry.com
  • 17. However, even if a SME builds a beautiful catalog… •  Buyers can’t find it among the billions of websites on the Internet •  Even if they do, they won’t trust it •  The main challenge of e-commerce is visibility, credibility, and trust
  • 18. OpenEntry Network Markets •  Any high profile business network •  Chamber of Commerce •  Export Promotion Agency •  Industry Association •  Trade Show •  Aggregates the catalogs of all its members (large & small) into a network market •  Generating visibility, credibility, trust •  Amazon.com EC2 Cloud Computing Facility enables scaling for mainstream business networks
  • 20. Does it Work? http://goo.gl/EWd4b Does it Work? http://goo.gl/EWd4b 20
  • 22. UNDP Conclusions •  The largest impact of implementing this “pro-poor” e-commerce approach was on income and employment. •  Firms using it reported jobs directly attributable to on-line promotion . . . 3918 women •  A relatively inexperienced group of young IT professionals could, with the proper tools, create employment for themselves while providing e- commerce services to local SMEs.
  • 23. Additional Considerations •  Don’t need credit card payments – for every $1 transacted online, $4 are influenced by the Internet •  Can start with local cash on delivery sales, 2CheckOut.com works everywhere •  Most international sales are B2B •  Shipping easier now - consolidated shipments can cut costs by 80%
  • 24. •  100 million SMEs will need help moving online in next 10 years •  Women and youth entrepreneurs earn income building catalogs for local SMEs •  Modest marginal cost of including e- commerce in projects for youth, women, employment, trade Potential Impact Huge Compared to Costs
  • 25. Opportunity for Telecentres •  Most SME owners are busy running their businesses and often not proficient with computers •  OpenEntry enables telecentres to offer paid services such as training, catalog setup and maintenance, and banner/template design •  SMEs will also pay telecentres for the use of computers and digital cameras
  • 26. Generating Income for Telecentres By Enabling Them to Provide E-commerce Services to Local Small and Medium Enterprises (SMEs) by Daniel Salcedo, Founder & CEO, dsalcedo@OpenEntry.com