One (last) word: Plastics

A UN report issued on World Environment day  showed dozens of nations acting to cut plastic, including a ban on plastic bags in Kenya, on styrofoam in Sri Lanka and the use of biodegradable bags in China. via

There’s a backlash against plastics that is ongoing in many not so noticed parts of the world today. So called ‘weak’ signals from three major economies stand out for the impact in the near and emerging future of their policy shifts towards the material use of plastics.

The first is India, where a recent waste audit in Bengaluru showed that over 60% of the waste littering the streets was from non recyclable consumer product packaging by both international and domestic brands. By 2020, India will abolish all single-use plastics, and introduce a campaign against marine litter, among other things.

The EU has also moved to ban the same, and the proposal also requires EU countries to collect 90 percent of single-use plastic drink bottles by 2025 and producers to help cover costs of waste management and clean-up.

China, on the other hand, has caused consternation among nations who relied on shipping their plastics off for recycling. They’ve banned imports of contaminated waste plastic, leaving questions hanging such as “And how do you get manufacturers to design a product that is more easily recyclable.” Though I find this conversation interesting for its consistent and tone deaf externalization of the problem – waste management is certainly a developing country problem, but materials technology and consumer packaging innovation is a developed country design challenge.

With more than 50 countries waking up to the plastics problem, there’s a deeper shift occurring in the air, beyond our critical need to protect wildlife and the oceans. That of dependency on oil – in case you didn’t know, the bulk of plastic is made from oil.

Here’s a quick round up of something of things happening in these major economies with significant chunks of the world’s population.

India has just approved a massive new 5000 megawatt solar farm, and as the map shows, there’s many more out there in the desert wastes. The Chinese and Indian solar farms are 10x the size of those in North America.

The number of electric cars on the road has more than doubled over the last three years, and of the global sales of electric vehicles (EVs) last year, China contributed more than half. And there’s a shift now from blind growth towards more strategic product development, with greater impact. Numerous European marques are opening factories and R&D centers in China. And India’s doing its best to keep up.

What is going to be the impact of these moves, combined, from these three major economies on the planet? The head of Shell’s Scenarios* team has already developed a scenario called Sky “which shows that changing the ways we transport people and goods is one of the crucial steps toward the world meeting the goals of the Paris Agreement — keeping the increase in global average temperature to well below 2⁰C above pre-industrial levels.”

On a planetary scale, these trends are the future, and products and business models that do not adapt to them are going to be increasingly obsolete, or suitable only for walled gardens. The use of Fahrenheit is but one example. Conserving humanity’s collective home is far more important for all our emerging futures.

 

*Shell originally developed the concept and tools for scenario planning

What can we learn from an informal market?

Documenting Busia Market, Kenya, January 2016 (Photo Credit: Niti Bhan)

I took this photo of Rinku taking photographs during our visit to Busia’s bustling cross border market as a means to document our own work documenting the borderland’s informal trade ecosystem. Sometimes we’re so immersed in our work that we forget to look up and recognize we’re participants too. Document everything, I tell people interested in the how and what of our work, you never know what will be important to capture until later in your analysis, usually when its too late to go back to the field for another look.

So, what can we learn from a visit to an informal market?

The subtext to that question would be “when using human centered design approach to observation and analysis as compared to a regular market visit”?

We’re looking for opportunities. We’re keeping an eye out for what might be missing, a gap or an unmet need. We’re watching closely, often sitting down for a while, or chatting up shopkeepers as often as the fancy strikes us. Its not just window shopping or wandering around aimlessly with a camera. Its entering the market place with a clear focus on learning how it works – what’s the organization of the layout? why are the all these products clustered over there? what is the underlying rhythm of the seeming chaos?

One visit won’t do if you’re looking for opportunities for innovating new products or services for one or more target segments of the market’s population. You might want to make a first recce to get a sense of the whole, and then come back to drill down further into a particular thematic area – is it the delivery men you’re interested in, or the logistics of egg transportation? Or, is it the fresh produce section where you’ve noticed greens wilting in the sun and think you have an idea for a cold chain solution – what would be its business model in this context?

Already, the ideas flow just from thinking about the market. Don’t let the chaos distract you from keenly discerning the system and the structure. That’s where the secret lies.

Stepping up human centered innovation planning for financial inclusion

Two Ugandan analysts from the Financial Sector Deepening (FSD) programme in Uganda write on the need for more human centered product development approaches in the design and delivery of financial services for rural Ugandans, especially the rural poor. One of their suggestions caught my attention in particular:

(iii) Third, to increase the introduction of new game changing solutions by financial institutions the government needs to put in place policies, laws and regulations that allow for new business models and approaches to financial delivery.

Innovative regulatory approaches like “sandboxes”, where startups are allowed to conduct live experiments in a controlled environment, have demonstrated success in developed markets. Regulators can therefore play a crucial role in being financial inclusion catalysts.

The late C.K. Prahalad, guru of serving the poor profitably, first mooted the concept of an innovation sandbox back in 2006, and the essence of his concept has remained an integral part of my own work ever since.

This approach could be called an innovation “sandbox” because it involves fairly complex, free-form exploration and even playful experimentation (the sand, with its flowing, shifting boundaries) within extremely fixed specified constraints (the walls, straight and rigid, that box in the sand).

The value of this approach is keenly felt at the bottom-of-the-pyramid market, but any industry, in any locale, can generate similar breakthroughs by creating a similar context for itself.

What Jimmy Ebong and Joseph Lutwama, the co-authors of the original article linked above, are mooting, however, is an extrapolation of the concept, where the regulatory and policy framework forms the boundaries of the “sandbox” within which various financial services pilots can be tested in the real world.

Committed and forward thinking governments can make the difference overnight for the ‘wicked problem’ of financial inclusion of the rural poor, inspiring innovative human centered solutions to citizen service delivery where its most sorely needed – the resource constrained and inadequate infrastructural operating environments of rural Africa.

 

Note:Mooting” is a favourite word of East African newsmedia, meaning the specialised application of the art of persuasive advocacy.

IKEA in India: Culture Centered Design Strategy

Its taken more than 10 years for single brand retail stores to enter the Indian market, and this year sees India’s first IKEA opening in Hyderabad. TS Ninan introduced their retail challenge succinctly, though he left me wanting more. And this snippet from an interview with the market opening CEO of IKEA in India (who, having laid the groundwork for 6 years, has now left – an interesting and thoughtful strategy right there imo) caught my attention.

In Europe, businesses look at the past, their systems and processes to plan ahead. India does not have a legacy. People don’t look backwards. Here you create the future as you go

Was IKEA’s product, design, and brand strategy going to be as human centered as reports of their 1000 home visits made it seem, or, as the groundbreaker Juvencio Maeztu implies, committing to India means a “culture centered strategy” – that too, one that is customized for each different culture, centered around a metropolitan area. For those who think India is a country, I like to remind them that its closer in concept to the EU, its a single market and currency, but each city has its own languages, culture, cuisine, and clothing, not to mention each state.

Ikea’s global designers meet artisans in co-creation workshops to handhold local artisans design products that meet global quality and design standards.via

I see familiar names in the design article. And I do like the photographs though I recognize my eye is taken aback because the years in Finland have influenced my aesthetic sensibilities closer to the Nordic norm. What I can say is that if this what the Swedes came up with after distilling down their hundreds of home visits, its an excellent integration of two extremes of design language. IKEA will have fun in India, and I suspect they intend to. The takeaway for culture centered design isn’t that “India” will receive one singular design aesthetic or product line but that each one of India’s cultures, both traditional and modern, will be catered to. That is powerful.

Moving from Unbranded to Branded

There’s a larger story here as well. The changes occurring in the Indian consumer market, for instance, and the increase in aspiration, purchasing power, and most importantly, design sensibilities. Back in 1990, during my first job after leaving the National Institute of Design, Ahmedabad, I faced barriers to marketing industrial design services that I suspect don’t even exist now. Product design was imitable and not something one paid good money for oneself. There were corporates who understood our value as a design studio but they were few and far between. Now, IKEA’s entry isn’t into a completely untapped market – there’s competition that’s been born in the last decade, both online and off. And, finally, there’s the handmade artisanal informal sector, who have long copied IKEA products from hand me down catalogs. On the other hand, unlike most consumer brands entering the Indian (or the African market) IKEA recognizes the competition offered by the informal (unorganized, as its known in India) economy, and seems to have addressed it.

What’s interesting about the Wharton analysis from October 2017, is that all the issues it raises seem to have been covered now that IKEA is finally revealing its India strategy as the first store prepares to open this month.

Unlike my concerns back in 2006/7, this time I’m a lot more confident that IKEA will achieve something wholly unexpected in India. I look forward to visiting.

Tecno and Nokia: The tale of two brands

Chinese mobile maker’s original brand strategy succeeds in Africa: Transsion’s Tecno

This year, Nokia got shoved out of the top 10 most admired brands in Africa list, not bad for a company that had lost its way in emerging markets 7 or 8 years ago. As an old (in all senses of the word) Nokia fangirl, here are some of my favourite posts from the heyday of following Jan Chipchase around Africa vicariously through his blog. These days, I tramp my own paths in Africa.

Luthuli Avenue, Nairobi, Kenya, July 2012 [Photo Credit: Niti Bhan]

What’s interesting about this list is Tecno, a mobile phone brand that’s unknown outside of Africa. Transsion Holdings, the Chinese manufacturer that owns this brand has a clear strategy and focus. They own Itel and Infinix brands of phone in addition to the Tecno brand and focus only on the African consumer market. You’ll note Itel is listed at number 16 in the chart above.

According to a report released by market analysis company Canalys, Tecno, iTel and Infinix, which are all sub-brands of Transsion, overtook Samsung with a 38 percent market share in the first quarter, compared with a 23 percent share for Samsung. Via

Rather than the old Nokia strategy of a product aimed at every price segment whilst keeping hold of the mother brand, Transsion has broken branding rules by deploying three brands each with their own persona – Itel for example is very popular for its featurephones among border market traders in Kenya and Uganda due to its week long battery life. Few are aware of Transsion itself. Until its time to add up the numbers.

This brand and design driven original manufacturing strategy reminds me of the work Prof. John Heskett had done in the Pearl River Delta before his untimely death.

John, posing for me when we met in Singapore, back in 2009

This slide captures the essence of his teaching. I only have my class notes.

Transsion’s focus, rise, and brand strategy are all hints of his influence, either directly or indirectly in their approach and work. I’m very glad to be reminded of him today, and I recognize that I will be back writing on more of his work in the very near future.

The comparative global impact of Alibaba vs. Amazon

Alibaba Business School and the United Nations Conference on Trade and Development (UNCTAD) brought 29 young entrepreneurs from 11 countries across Africa to the Alibaba campus in Hangzhou, China for the third eFounders Fellowship cohort.

Chinese corporate soft power influence is production driven, not consumption focused. Alibaba, the e-commerce giant with digital payment tentacles, has been graduating cohorts of young entrepreneurs from Asia and Africa this past year. This initiative is the outcome from Jack Ma’s seminal visit to Nairobi last year, when thousands of young Kenyans waited for him in the sun.

Photo Credit: Abdishakur Mohammed, July 2017, University of Nairobi grounds, Kenya

He talks about entrepreneurship in a digital world, and personally shows up to meet visiting cohorts to talk about taking the lessons learnt from e-commerce in the most challenging environments in China (rural, mobile, social) back home to their own not dissimilar operating environments.

Contrast this with the first thing that comes to mind when you think about Amazon these days – a desperate workforce unable to take a leak, afraid to lose their low waged jobs as worker bees in a humongous warehouse. It keeps prices down and the consumption that runs the billions flowing, but whom does it benefit beyond the shareholders?

It struck me when I saw the news about “Alibaba Global Leadership Academy” that Chinese soft power was increasingly about driving production and growth aka development along their entire value chain, even among putative new consumer markets, whilst the American model was still stuck in a consumption driven mindset of the 1980s first wave of globalization. Buy more cola, wear our jeans, use our credit card, say the American brands in Jakarta or Accra or Nairobi.

The difference in mindset is stark when you think about the tech giants of Silicon Valley looking to uplift with low cost connectivity and internet basics for free, and compare to the Chinese giants thinking about raising the purchasing power first. The english language media would have you believe its all about neo-colonialism for natural resources, but the recent shifts in tactics and strategy seem to imply a less demoralizing mindset than anything evidenced by charitable good works handing out goodies to the downtrodden. Because whatever the agenda, the bottomline will be that at end of the exercise there will be a group left inspired to build their own markets on their mobiles, versus a group left holding a palliative goodie.

“My experience here has shifted my thinking. Before, we were focused on pleasing the investors, but now I see the importance of putting our customers first, then my employees, then the investors,” said Andreas Koumato, 26, from Chad , the founder of Mossosouk, an e-commerce platform. “Let others [benefit], then later, we will gain.”

Production driven social impact is far more powerful than consumption driven. Human centered productivity even more so.

Ibn Battuta in Timbuktu

An ongoing project has me immersed in the history of West African trade, and of course, contemporary accounts of regional cross border trade. Rather than not blog, here’s a link heavy post on Ibn Battuta‘s travels in the region back in the 14th Century. Click on the image for a larger version of the map.

“Histories and biographies there are in quantity, but the historians for all their picturesque details, seldom show the ability to select the essential and to give their figures that touch of the intimate which makes them live again for the reader. It is in this faculty that Ibn Battuta excels.”

Thus begins the book, “Ibn Battuta, Travels in Asia and Africa 1325-1354” published by Routledge and Kegan Paul.

Abu Abdullah Muhammad Ibn Battuta, was a Moroccan Muslim scholar and traveler. He is known for his traveling and going on excursions called the Rihla. His journeys lasted for a period of almost thirty years. This covered nearly the whole of the known Islamic world and beyond, extending from North Africa, West Africa, Southern Europe and Eastern Europe in the West, to the Middle East, India, Central Asia, Southeast Asia and China in the East, a distance readily surpassing that of his predecessors. After his travel he returned to Morocco and gave his account of the experience to Ibn Juzay.

He wrote what was possibly the world’s first account of globalization.

His adventures reveal, as Dunn writes, “the formation of dense networks of communication and exchange.” These networks “linked in one way or another nearly everyone in the hemisphere with nearly everyone else.

“From Ibn Battuta,” Dunn continues, “we discover webs of interconnection that stretched from Spain to China, and from Kazakhstan to Tanzania.” Even in the 14th century, an event in one part of Eurasia or Africa might affect places thousands of miles away.

Battuta crossed over 40 modern countries and covered over 70,000 miles. He became one of the greatest travelers the world has ever seen. He left behind a travelogue of his life’s journeys filled with details on the places, people and politics of medieval Eurasia and North Africa.

Trained judge (qadi), scholar, and observer, he’s been called a true Renaissance man, surpassing his contemporary, that other, more famous traveler Marco Polo.

Ecodesign, Ecolabels and the Environment: How Europe is redesigning our footprint on earth

What do chopped fresh green beans have in common with high definition flat screen TV’s? And how does this relate to design? In Europe, they’re both considered consumer products whose journey from raw material to shopwindow requires energy to process—emitting greenhouse gases that can have an adverse impact on the environment—and are considered to possess a ‘carbon footprint.’ In other words, they are products of a larger global industrial ecosystem.

When the postal service is setting down guidelines on the creativity and production of direct mailers so that their customers can better recycle them, it signals that graphic design needs to evolve the way its practiced entirely.

 

Acronyms and Initiatives
The European Union’s chosen approach to address the issue of environmental degradation and climate change is a combination of regulations, directives and voluntary activities. Industrial designers and engineers around the world are familiar with many of many of these already in effect—the EU Directive on the Restriction of Hazardous Substances (RoHS) and the EU Directive on the Waste from Electrical & Electronic Equipment (WEEE) are top of mind in the field of consumer electronics and other energy consuming products (EUPs)—the first sector to be addressed by these rules.

Just ratified is the new European law on chemicals, REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), which covers the toxicity and hazards of chemical substances, touching the nascent field of green chemistry. Also to be enforced is the EU Directive on the Ecodesign of EUPs – this will directly regulate the negative contribution to the environment across the entire lifecycle of the product, not just the use phase.

Supporting activities include the Ecolabel—a voluntary certification for a wider range of products beyond those that merely consume energy during their use—helping consumers identify products that have considered all aspects of environmental impact toward minimum ecological footprint, compared to other products in the same category. This includes the chopped green beans, as their total carbon footprint assessed across the supply chain would take into account the energy expended to grow them, process them, package them and deliver them to the neighbourhood supermarket.

All of these and more come under the holistic approach of the Integrated Product Policy (IPP), which can be considered the foundation for such decision-making and the design of the various directives, programs and certifications. The IPP is a systemic look at the environmental impact of the entire supply chain and life cycle of any given product, taking all aspects of the global industrial ecosystem into account: raw materials, manufacture, transportation, distribution, marketing, sales, delivery and waste treatment at the end of life.

 

The Power of Design
While design has been picking up speed in addressing issues of sustainable development, a quick purview of the larger ecosystem helps in understanding the long-term consequences of the decisions made in the studio. It is recognized that a significant proportion (ranging from 70% to 90%) of any given product’s ecological footprint can be addressed at the design stage. But the considerations mentioned above take into account factors all along the product chain that can directly or indirectly contribute to environmental degradation; decisions made at the design stage now become crucial in ensuring the best outcome throughout the entire system.

Carbon Trust UK‘s simplified diagram of the lifecycle of a typical can of cola, for example, enables us to visualize and correlate the relationship between product design choices and energy consumption at every stage of the supply chain.

Read On…

Shopping for Innovation: What you need to know before hiring a design firm

This guide was written for Core77 in late 2006, co-authored with Steve Portigal. I was looking for it today, as I wanted to share the distinction between a Vendor of innovation and design services and a Partner who goes beyond the requested task to discern and perceive the real challenge to be solved. I couldn’t find it online, Core77 having redesigned their site from the ground up, so I’ve reposted it here from the Wayback Machine.

Getting Started
You’ve read all the articles and can’t possibly stomach one more column on the iPod. It’s clear that design+innovation is the hot topic for business—with businesspeople taking more active notice of the design scene, and designers focusing more on strategy. (It’s not like business and design were so far apart to begin with, of course.) But what about those new to the conversation? If everyone is telling you that design is the differentiator, how do you get started? What are the considerations when bringing on strategic design services?

There are many things you need to consider before hiring a design firm, but we’re going to start with three: The Problem (defining your needs), the People (who the players are), and the Partnership (the nature of the engagement). Design firms are businesses, but with unique perspectives and unique work processes. Understanding a bit of the industry culture will go a long way in helping you to establish a successful engagement.

The Problem: Defining your goals
As with any initiative, you first need to define your problem and your goals. Having these goals well-articulated and written down on paper as a starting point for the discussion is crucial. You may find that your reasons for bringing in design services differ from others in your organization, so you need to get your story straight before you begin talking to creatives. You should also understand that that story is likely to be pushed and pulled.

Design can be brought in as a service, but it’s important to remember that it’s a creative service. Designers are smart and talented people who typically do “think out of the box” (a phrase more derided inside the design community than outside, yet still requested in more initial meetings than you can imagine). So although your desired outcome may be very specific, the designer’s process to delivering your outcome will inevitably involve challenging its very foundations. Here’s an illustration:

Q: How many designers does it take to change a light bulb?
A: Does it have to be a light bulb?

In real terms, this can be the difference between asking a designer to create a new vase, versus asking for a new way to display flowers in the home. The first problem statement already converges on a solution—perhaps prematurely. The second opens up new design opportunities, new target markets, and ultimately potential new revenue streams.

So though you’ll want to define your problem as clearly as possible to begin with, you should also be willing to engage in discussions with designers in order to craft a more open-ended, innovative, and ultimately actionable problem statement. This is the way designers think, but being prepared for this potential frame shift can be a tremendous challenge. You are likely to learn things that you didn’t want to know, that you aren’t even prepared to know, and that challenge your closely-held beliefs. (On the flip side, you should be aware that designers have a healthy skepticism about just how much “paradigm-busting innovation” a given company is prepared to make. The design consulting bar-tale of the client who proclaims, “I want something completely innovative, but I want to keep making my stuff exactly the same way I do now” is legendary, but it’s also true.)

Nevertheless, it is often difficult for clients to think like the designers they hire, and to not see them as threats. This is something you need to consider when you’re bringing in a design consultant: you’re hiring someone to tell you something you don’t know; to provide you with something that you don’t have. But will you be ready to take their advice?

Read On…

Primer on African Fintech: Myths, Misconceptions, Opportunities, Hotspots and Roadblocks

As we prepare to start work for our third African fintech client, I thought it was time to quickly and briefly introduce the opportunity space and clear up some misunderstandings around fintech in Africa.

  • The first point is the common confusion between Fintech and financial inclusion. Investopedia’s definition of Fintech says financial inclusion, that is, affordable and accessible financial services to the underserved and unbanked is only one of the many areas fintech is actively addressing. While technology helps provide cheaper solutions for emerging markets such as those on the African continent, all fintech cannot be said to be equivalent to financial inclusion.
  • This leads us to a clarification on what exactly is Fintech. I prefer to quote Investopedia since the entry in Wikipedia defines it as the industry itself. “Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies.
  • Thus, while financial inclusion is a key untapped opportunity space for fintech innovation of all kinds, there are numerous other opportunities along the entire value chain of financial service provision both B2B and B2C, including intermediary services, which are ripe for disruption in the African context.
  • Beyond the conventional preference for disruption of the existing context, there are as many if not more opportunities for meeting the unmet needs of African businesses and consumers. History, geography, economics and conventional wisdom have together combined to create a vacuum of solutions and services that address the unique circumstances of the African operating environment which still tends to be heavily cash dependent and is described commonly as “informal”. And this commercial environment has lagged in custom designed tools and services for small business productivity or household enterprise management.
  • Hotspots: Kenya overwhelming leads in mindshare as the leading fintech innovation market on the continent, and grabs the lion’s share of investments in East Africa. However, the GSMA’s latest report implies West Africa is rapidly catching up, and may outspend East Africa. The WAEMU region is a hidden hotspot, and Ghana leads the anglophone countries.
  • The largest market opportunity, by population, remains a challenge however, for a variety of reasons including policy and regulation. Nigeria’s payments innovators have made a name for themselves but their domestic market has not felt the impact of their efforts. Even mobile money, introduced more than 5 years ago, has only achieved 1% penetration. On the other hand, it took India years and years before digital payments reached visibly transformational critical mass. There’s hope.
  • Lastly, Chinese investment has just entered the African fintech space, talking up financial inclusion – a clear sign of its economic importance for the future development of trade and industry.