Archive for the ‘Culture’ Category

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

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…

Context Sensitive Law: What happens when African societal norms meet modern commercial practice?

In short, social forces shape contracts: the stronger the sense of community, the more effective these sanctions are likely to be. The result: A privately ordered system of business behaviour, which exists without reference to the governing law of the state. The underlying adhesive: community.

In the absence of conventional forms of collateral, my contract partner’s knowledge of my financial standing and habits will serve as a guarantor of payment.

While trust may not always be present, and altruistically putting another’s needs before one’s own may be difficult when money is tight and economic needs press, a moderate sense of community does indeed characterise contracting in this setting. This leaves room for private property and individual financial goals, but ensures that one prioritises communal relations when making economic decisions.

This snippet from a short article by Andrew Hutchison and Nkanyiso Sibanda validates our own discoveries from observing the informal trade ecosystem in East Africa. Hutchison and Sibanda’s aim is to  inform the policy question as to whether South Africa needs to develop a dedicated indigenous law of contract. Their research set about moving the study of contracting from the centralised law of the state into the context of what happens in the popular economy – the space where the informal and formal sectors meet.

This is a powerful space for policy and law. Few formal institutions have successfully bridged this space between the formal and informal – my usual go to example are the mobile service providers and their prepaid purchase model as one that fits the needs of the informal context.

Sibanda and Hutchison go on to share some thoughts on their future direction:

We have described these informal rules and regulations as adhering to the concept of ubuntu. Retired Constitutional Court judge, Yvonne Mokgoro, defines ubuntu using the African saying:

a human being is a human being through other human beings.

This means that a person’s individual existence and welfare are relative to that of her community.

Context sensitive law

How are we then to define ubuntu in a given contractual setting in South Africa? “With reference to context,” is our answer. The notion of community described above requires a certain type of social environment. We think that this environment is to be found in South Africa’s popular economy and the relevant empirical literature supports this view. But what about high value contracts between South Africa’s blue chip companies?

We believe that contract law should be context sensitive. This should include which business community’s norms are used in determining the outcome of a given commercial dispute. This is not to say that corporates aren’t African, but rather that the value of community may be different. And even in the informal sector, contracts must be honoured. Under the South African Constitution, common and customary law are presently separate parallel branches. Our research will inform future arguments about how these two branches may influence each other.

I hope they will inspire lawyers and researchers in other African countries to begin looking at the same challenges in their own operating environment. Inspiring policy thinking about customary law in the context of community and business would go a long way to paving the path for an African version of the formal institutions required for a developed economy.

Elements of Handpainted Graphic Design and Signage

The first time I went to Africa, my research companion, a South African designer, very apologetically mentioned the use of handwritten signage in his country. We were there on behalf of Samsung, and our global design research team included members from Seoul, Singapore, and Pretoria.

“Its all rather primitive over here” he said, but I fear my heart was captured.

Look at this signage and graphic design for a radio station in western Kenya. It has its own balance and harmony. It’s primitive only if you believe that fonts must generated by computers, and laser cut in acrylic before it can be used. Mass production is as modern as automation and takes away the unique beauty of the best of the signage that I’ve seen.

There will, of course, always be the aspirational ones, and the ambitious will do their best to satisfy. Some succeed very well indeed.

Look at this set of shops – each has its name written in a unique font, or handwriting style, while the whole still manages to convey the brand being advertised with a semblance of coherence. A true artist at work.

My favourite, however, is this one from the wall of an agro-vet dealer’s store. In a context where language and literacy tends to vary across a spectrum of facility, clearly communicating that you can get your cows artificially inseminated here is a bonus. The use of colour and the ombre backgrounds show the work of an artist.

And finally, this combination of a stencil – used for the desktop computer, and calligraphy – though the letter spacing may or may not have been deliberate, holds a position in its own right. That might not even be a stencil but the whole piece is crafted with care.

India’s Hidden Middle Class and the MNC Conundrum

The Economist writes a rather breathless take on a theme very popular just over a decade ago – the Great Indian Middle Class so longingly hoped and wished for still hadn’t emerged to satisfy the consumption habits preferred by the global multinational brands. Where were they, the article shrilly asked, unquestioningly promoting China’s middle class as an MNC success and overlooking all the challenges documented theretofore.

There’s an undeniable consumer boom visible across India, I’ve seen it and documented it myself. The difference this time around is that its a “hidden middle” – hidden from the lenses that MNCs use to identify their preferred customer for iPhones and IKEA, pizza and burgers. Having worked for both an MNC – All India advertising for Hewlett-Packard India in 1996, and an advertising agency – McCann Erickson 1994-1996 during the first decade of market liberalization, I discover I’ve so much to say to this Economist nonsense that I’ll bullet point my thoughts below to grasp some order from the ramble.

  • One of the first things I’d noticed in the March 2017 trip was that the style and flavour of the markets we’d used to frequent had changed. There was indeed a consumer majority now but it wasn’t the global elite preferred by MNCs. Where once malls were full of western style wear, and one could identify a woman’s economic and social strata by her fashion choices, these lines had blurred and democratized so much so that the market itself had changed.
  • Aspirational purchasing meant that pricing had to suit the pocket of the ambitious though the clothes were local versions of global styles. Everyone in the city wore western wear, though obviously of Indian cut and make. What I saw happening was what India has always done for centuries – absorb the foreign influence and make it uniquely her own. Its been two decades and the time is about right for the unique Indian middle class to emerge.
  • This hidden middle harks back to the original concept of middle classes – perhaps a factory worker who is now paid enough to maintain a motorcycle, an ATM card, and all the mod cons in his one room home. Or, the now grown up children, educated in English, taking over the discarded jobs of the former English educated elite in the call centers and the banking halls, the plethora of hospitality outlets and airlines, to bring a sheen of polish that hitherto never existed for their parents’ generation.
  • This middle class prefers their spicy Indian food, dolled up in a fast food outlet, looking like a Big Mac but tasting like home. This middle class will add paneer to their pizza and cumin to their soda water. You won’t see them at all if you’re hawking your pineapple on your ham.
  • This middle is 300 million strong I’d agree with the Indian executives mentioned in the Economist article. They can sense it but they can’t deliver it up in the manner that the research reports and multinationals require. That’s why there’s a huge missing middle, the same reason why Africa’s consumers are invisible for the most part, they don’t look like the Consumer nor fit the segmentation attributes.
  • One quick example that ports across cultures and countries is the taxi hailing app divide – there’s a local variant, Ola, that’s 1/3 to 1/5 the price of the global giant, Uber. The Ola driver accepts a variety of payment mechanisms including cash. He said to us that Uber was more popular in the better parts of town and considered an upper class product, while Ola was for everyone, even his own wife. This kind of brand segmentation exists up and down the spectrum of goods and services, rooted as it is in elements of India’s heritage and culture. And the mass majority brands will always take the lion’s share of consumers away from any imported brand. Unilever is quoted in the Economist article but the company had been known as Hindustan Lever for decades before hand and has faced its own struggles with indigenous upstarts like Nirma.

And, I suspect, that global multinationals, barring a few who’ve been around forever and a day, may never really crack the Indian market, just like they haven’t really done what they’d set out to do in China either. An ideal moment, on the other hand, to rethink the consumption driven growth frenzy required of these brands.

NB: The shopkeeper’s sign claims to sell both wholesale and retail.

Household energy consumption behavioural study in East Africa: Cooking (Part 2 of 3)

Scrap wood fueled three stone fire in sheltered corner

The following is extracted from a six month study during 2012 on household energy consumption behaviour in rural Kenya and Rwanda among the lower income demographic, that led to an understanding of some of barriers hampering the sales of client’s solar products in this market. This 2nd part will focus on fuel usage and consumption behaviours for cooking. Users sampled for this study were selected based on varying fuel consumption patterns, ranging from a single homestead to a rural hotel catering for more than 12 hours a day.

Fuel Usage Behaviour is Influenced Greatly by Location

Choice of fuel and decisions on quantity kept in stock for cooking is dependent on the location of the primary residence rather than income. Rural homesteads in Kenya have a separate outhouse for cooking and firewood is the preferred choice of fuel even in those regions where shambas are too small to support their own grove of trees.

Kilonzi’s wife dreams of upgrading to an LPG cookstove some day in the future

That is, while Kilonzi’s wife on a large shamba in Makueni might stack enough firewood for just two or three days, collected for free from her own backyard, Mama Grace the tea farmer with land constraints in Kisii will purchase an entire tree to last her for a month. Meanwhile, the more economically challenged on small shambas devote a week foraging far and wide for enough brushwood to last for two or three months before needing to take time away again from more pressing household duties.

Charcoal is also used on the homestead but only for certain tasks like making chapatis or for quickly brewing tea for visitors or in the morning rush before school or work. Even if the charcoal is made right on the shamba from a tree that needed felling, most of it is kept aside for sale and considered a source of cash money rather than consumed as fuel.

Residents who live away from their shambas, taking up rooms in town due to their work where cooking must be done in the same space as living and other activities, cannot use firewood. In fact, if renting, landlords clearly state that the use of firewood is banned, as a safety precaution. Thus, urban residents are forced to choose fuels that can be used in small, portable cooking stoves and charcoal ends up being the most common due to its relative cost as compared to kerosene. Those who do own a kerosene stove are in the minority and again, its use is only for very specific tasks that require speed such as making tea for visitors or in the morning.

Heavy Duty Charcoal Usage by Hotel

For those whose primary fuel for cooking is charcoal, the quantity purchased is dependant on cash in hand if their income is not from a salaried position and this ranges from a ‘deben’ which lasts for about 5 or 6 days and costs around 100 – 130 Kes to an entire sack which ranges from 500 to 750 Kes and can last as long as a month. Pricing for fuel is closely related to its proximity to the source, since transportation can be expensive and convenience is a service that comes with a premium. Kerosene which sells for 83 Kes a litre at the petrol station in town was found to be selling at a rate of 140Kes/litre at a small duka deep in the interior.

Part One: Introduction to Household Energy Consumption Behaviour Study in East Africa (2012)
Part Three: Lighting & Concluding Remarks

Introduction to rural household energy consumption behaviour in East Africa (1 of 3 parts)

The following is extracted from a six month study during 2012 on household energy consumption behaviour in rural Kenya and Rwanda among the lower income demographic, that led to an understanding of some of barriers hampering the sales of client’s solar products in this market. This first part is an overview of household financial management in conditions irregular and unpredictable income streams from a variety of sources. The 2nd and 3rd part will focus on fuel usage and consumption behaviours for cooking and for lighting separately. Users sampled for this study were selected based on varying fuel consumption patterns, ranging from a single homestead to a rural hotel catering for more than 12 hours a day.

Aspirational ownership and tangible evidence of savings in prepaid purchase model of solar panel, as seen in Chuka, Kenya (Photo: Niti Bhan, February 2012)

Rural Kenyans are not very different from rural Filipinos or Malawians or Indians when it comes to the way they manage their daily household expenses. Similarities in decision making, in purchasing patterns and in observed consumer behaviour, all stem from the same underlying need to plan and manage on irregular incomes from a variety of multiple sources in harsh environments of scarcity and uncertainty. The underlying driver is always to stretch the limited shilling, rupee or peso to the maximum while keeping one’s head above water.

With the exception of the salaried schoolteacher, who managed on fixed amounts of cash paid predictably on a calender schedule, the rest juggled an irregular cash flow against required expenses, attempting to minimize the differences over calender time and as a planning mechanism across the natural year’s seasons of abundance and scarcity. Even cash croppers like Mama Grace, who received end month payments from the tea factory, coped with the significant difference in the quality and quantity of tea harvested during the wet and the dry seasons with a variance of as much as 300% between high and low payments.

Rural homesteads manage their household finances rather like a “portfolio of investments” that mature over varying times such as cow’s milk which can be sold daily for cash, while a chicken takes less time than a field of maize to be ready for harvest and sale. Thus decisions are made based on timing of the expense and the choice of ‘investment’ to liquidate on what was ‘ready’ as well as the amount of cash required. For example, in Kilala livestock market it is a known fact that livestock prices always drop in January as its time for first term school fees and everybody needs to sell to raise the necessary cash. Similarly, major purchases or cash outlays are planned for known times of abundance such as right after the seasonal harvest.

Unlike those on a fixed salary who are able to plan ahead, those on irregular incomes need greater control and flexibility over the timing – that is the frequency and the periodicity; and well the amount – in cash or kind; of their cash flow, as a planning mechanism for financial management. In fact, the greater the span of control the customer has over their time and money, as articulated above, the greater the success of a business model or payment plan. This is why prepaid airtime is the preferred model for 96% of the African continent’s 700 million mobile phone users and also why kerosene has been so hard to dislodge. It can be purchased by cash amount (say 40 Kes worth) or quantity (half a litre or 5 litres) on demand or in bulk, and then frugally used for as long as possible, allowing consumers control over their “time” and “money” with great flexibility.

Observations on household fuel and energy use reflect these purchasing patterns and consumer behaviour. Cooking and then lighting are the most important needs, and the two elements of time and money as discussed above, show up in the form of duration and location. While duration of use has a direct relationship to the amount of time and money required, location has a critical bearing on behaviour in rural Kenya as will be seen in forthcoming posts.

 

Part One: Introduction to Household Energy Consumption Behaviour Study in East Africa (2012)
Part Two: Cooking
Part Three: Lighting & Concluding Remarks

Absolute Numbers 2007-2017: The “Developing” World Now Dominates the Internet

Source: http://tmenguy.free.fr/TechBlog/?p=161

Traditionally, the data on ICT usage across the world tends to be presented proportionally – per capita usage, or penetration in the form of percentage of population. This made sense 10 years ago, when the world had just begun to notice the rapid growth of mobile phone adoption in developing regions. The typical example shown above was extremely popular – many of you will recognize it – Africa was outstripping the world in phone sales, and the prepaid business model had opened the floodgates.

At this time, however, devices were still at the feature phone stage, and Nokia owned the market. Voice and SMS were the real time communication disruptors, and smartphones only just entered the public consciousness. Internet penetration was still in the future.

Recently, however, I came across current data on internet usage presented in absolute numbers – shown above – of people online. The difference is rather stark, when compared to the proportional representation – see below.

Not only are the next two billion online, but the absolute numbers re-order the regions in a very different way. Asia leads the world online, and even Africa ranks higher than North America. Here’s the same data presented, by region, as a pie chart.

The distortion created by proportional or per capita presented skews the true landscape of the actual human beings who are using the internet. Ten years ago, this might have made sense given the passive content consumption nature of much of the early world wide web.

Today, given the dominance of social media, and the frictionless ability for anyone to share their thoughts, their photos, or their music video, its the absolute numbers that actually make a difference. There is more content available in Mandarin than in English, though we may not know it, and there are more Africans talking to each other every morning than there are North Americans.

I’ll be following up with more writing on the implications of this historic decade in human history – between 2007 and 2017, the long awaited next billion not only came online, but began showing us how to disrupt everything from cross border payments, to cryptocurrency adoption. They are my hope for a more peaceful, inclusive, and sustainable future for our grandchildren.

Cognitive dissonance and smartphones in East Africa

via twitter, a modern day kanga from East Africa

Its jarring to see high level INGO messaging still talking about “ICT4D” not doing it’s part to bring about technology driven transformation in rural or informal sector Africa when every other sign from the continent points to a mainstreaming of ICT that goes beyond the individual’s capacity to tweet.

The kanga is a traditional item of women’s clothing worn all along the Swahili coast of Eastern and Southern Africa. Probably originating from the monsoon driven textiles trade with the west coast of India long ago in the mists of history, the kanga is rather well known for incorporating Swahili proverbs and aphorisms within its design.

While traditional sayings might refer to love or social relationships, warnings and idiomatic sayings, this photograph of the kanga, now making the rounds on social media, which I’ve shared above, provides clear evidence of the ubiquity of smartphone technology and social media communication in local culture.

Surely your screenshot is waiting in your inbox isn’t a traditional proverb nor an age old Kiswahili aphorism.

Frame Insights: Going back to first principles in the Innovation Planning Process

After conducting research, we need to bring structure to what has been found and learned. We sort, cluster, and organize the data gathered and begin to find important patterns. We analyze contextual data and view patterns that point to untapped market opportunities or niches. Finding insights and patterns that repeatedly emerge from multiple analyses of data is beneficial. ~ Vijay Kumar, 101 Design Methods

“It’s what happens after the research that’s important” is something I found myself saying three times to three different people in three different contexts over the past couple of days. Anyone can go out and interview users and beneficiaries. What’s important is what happens during the Analysis phase.

To ponder this in detail, I wanted to go back to first principles, and drill down into the post research stage where we are expected to frame our insights.

Vijay’s slide pops out 5 key outcomes from this phase, and these are critical for solution development in the subsequent phase. These 5 outcomes from analysis of the data collected during the research phase are:

  1. Looking for patterns
  2. Exploring systems
  3. Identifying opportunities
  4. Developing guiding principles
  5. Constructing overviews

It is this stage that distinguishes the quality of the outcome. Now, in the case of our work in the informal economy operating environment, we have built up an overview of the landscape over the past several years, primarily through immersion and thick data collection using design ethnography methods.

Starting from the purchasing patterns and buyer behaviour of low income consumers, back in early 2008, all the way through to the development of guiding principles such as flexibility, we have explored and mapped the ecosystem from numerous vantage points.

Today, our synthesis of user research does not happen in isolation from the body of work – intellectual property – that has been developed over time, through experiential and practical knowledge.

This, then, is what underlay my conviction when I spoke about the importance of the quality of interpretation of the data, and the transmutation of these interpretations into implemented insights in the form of new product features, service design elements, or nuances of the payment plan in the business model.

Increasingly, the Frame Insights phase of our work has led to the evolution of our understanding of the commercial landscape in rural and informal markets where incomes tend to be irregular and volatile, and infrastructure is inadequate or missing. It is this that I’ve been attempting to capture under the category of Biashara Economics.

It’s not Africa specific. The patterns hold, give or take ~30% margin for historical/cultural/social differences, across continents. That is because these patterns are the natural response to the common characteristics of seasonality, volatility, uncertainty, and unpredictability. And this is why one can see the success of the prepaid business model around the world.

It strikes me here that this in fact validates the methodology and approach to exploration and discovery in unknown contexts, something I had framed as the starting point for the very first such project almost a decade ago. Over time, I discovered how much the methods, as delineated by Vijay in Chicago, had to be adapted for the context but that is a topic for another time.