Social impact of ICT innovations

1. Social Impact of ICT Innovations
By
Boniface Ngahu
SBO Research
May, 2016

2. • Distribution of wealth and the capacity to generate incomes in the
world can be captured in the form of an economic pyramid
Economic Pyramid
Bottom of the Pyramid (BOP)
4 billion people, earn less than 2$ a day
(Prahad 2006)
Lower- Middle
income
Wealthy

3. Defining the BOP
• Vijay Mahajan, Author of ‘Africa Rising’ divides Africa into 3 segments
Africa 2: Lower/Middle class 35%
(350 million)
Africa 1: Elite 15%
(150 million)
Africa 3: Bottom of pyramid 50%
(500 million)
Kenya has Approx. 28 million people in this segment

4. Kenyan Social Classes
4
Population by Social Class
E
C2
C1
AB 4% 1.7m
14% 6.2m
20% 8.8m
D 28% 12.3m
34% 15.2m
} Bottom of
pyramid
Source: SBO Data 2014

5. Social Impacts of ICT
Innovations

6. Improved Farm Yields & Practices
• ICTs have formed products and services
adopted by agricultural practitioners
– Resulting into better methods to improve their
yields and farming practices.
• Using mobile phones and SMS, farmers
have been able to
– Expand distribution channels to more remote
rural areas
– Offer products and services to farmers that
were not available to them before
Source: ICT Applications and Agricultural Input Supply Companies, USAID, 2013).

7. “Farmers Will Drive Ferraris”
These platforms communicate agricultural inputs such as product or input
advertisements,
price fluctuations, breeding and extension services and advisory services among others
Kilimo Salama 41%
i-Cow 35%
SMSSokotext 16%
m-Farm 7%
Majority of Dairy farmers
were found to use
at least one farming app
in Limuru
Wanjohi, 2015

8. Kenyans Lead the World In technology Adoption
• This CA Consumer Trends survey by SBO Research
characterized respondents into various categories in the
product adoption curve mainly driven by digital migration
• Majority of consumers defined themselves as innovators
8
63%
26%
4%
7%
Innovator
Early adopter
Early majority
Late majority
Base = 4666
Innovators • Rapidly grasp products when first introduced
• Are eager to try new ideas and product
• Rely less on group norms and are more self-confident
• Get their information more from scientific sources and experts

9. Role of social economic factors on use of
ICT services
9

10. Factors that influence use /purchase of ICT
services
• Price or the disposable income is the greatest influencer in purchase decisions for ICT products/
services followed by recommendation from friends/ relatives .Peer pressure has the least influence.
• Courier: - quality, speed, cost and geographical reach is key
• Mobile:- quality, cost and value added services are key
10
To what extent does each of the following factors influence your decision to purchase ICT
products? Scale = 1- 3
Mean score %
Price/ amount of money that I have 2.67 89%
Recommendation by friends/ relatives 2.23 74%
Peer pressure 1.85 62%
Base = 4666

11. Social economic effects of ICT
Pros Cons
Broadcast
services
• Imparting more knowledge/ consumer
empowerment
• Employment creation
• Transparency / freedom of expression
• Appreciation of culture diversity
• Tribalism and hate speech due to the
increased number of vernacular stations
• Exposure to inappropriate content (moral
degradation)
• Relaying of conflicting information
Mobile
phones
• Close of geographical divide (touch within
despite time and space)
• Accelerated communication
• Decreased frequency of travel to deliver
cash
• Increased employment opportunities
• Increased financial security
• Improved saving culture
• Increased culture of contributing to charity
• Language alteration
• More frequent than meaningful
communication (emotions cannot be
expressed effectively using gadgets)
• Less personal (face to face) interactions
• Increased financial fraud
Internet • Close of geographical divide (people keep
in touch despite time and space)
• Increased opportunities
• Moral degradation
• Increased financial fraud

12. Digital TV _ Challenges and Benefits
28%
45%
71%
82%
Access to electronic
program guide
Increased access services
/ease of integrating with
other technology
Better picture quality
Access to a wide variety
of channels
What are some of the benefits of using digital TV?
Base= 2339 2%
53%
54%
59%
Bad signals
Monthly charges for the set top
boxes
High cost in acquiring set top
boxes
Interrupted viewing during rainy
periods
What challenges are you experiencing when using digital
TV?
• Digital TV has facilitated access to a wide variety of channels and viewers get better picture
quality
• Greatest challenge faced when using digital TV is interrupted viewing during rainy periods as well
as cost of acquisition of digital set top boxes and monthly subscription charges
Base= 2339

13. Other Social Impacts
Sponsorships & Promotions
Health
Productivity
Social
Security
Financial Inclusion
Betting
Cyber crime

14. Thank You
Thank you