Archive for the ‘UCSD’ Category

As global firms (MNC) pull back from emerging markets, what does this mean for Africa?

tumblr_nwsbz0ytDw1qghc1jo1_500Last week’s issue of The Economist drilled down deeper to cover the retreat of globalization – at least in the most visible form, that of the multinational brands dotting cityscapes around the world. The retreat of the global company, they trumpet, the end of Theodore Levitt’s vision.

Credit Suisse takes a concise yet comprehensive look at these weak signals in their well-written report that frames the situation as a transitional tug of war between globalization and multipolarity – an inflection point, rather than a retreat. They make it sound like missing the turn at an intersection and having to come back to the traffic lights to figure out which way to go.

Duncan Green of Oxfam captured the essence well:

But the deeper explanation is that both the advantages of scale and those of arbitrage have worn away. Global firms have big overheads; complex supply chains tie up inventory; sprawling organisations are hard to run. Some arbitrage opportunities have been exhausted; wages have risen in China; and most firms have massaged their tax bills as low as they can go. The free flow of information means that competitors can catch up with leads in technology and know-how more easily than they used to. As a result firms with a domestic focus are winning market share.

In the “headquarters countries”, the mood changed after the financial crisis. Multinational firms started to be seen as agents of inequality. They created jobs abroad, but not at home. The profits from their hoards of intellectual property were pocketed by a wealthy shareholder elite. Political willingness to help multinationals duly lapsed.

Of all those involved in the spread of global businesses, the “host countries” that receive investment by multinationals remain the most enthusiastic.

The first thing to note is that the global MNCs being considered by The Economist are primarily the legacy ones  – fast food chains like McDonalds and KFC (Yum Brands) – whose shiny logos used to represent the liberalization of the closed markets of India and China.

Even at powerhouses such as Unilever, General Electric (GE), PepsiCo and Procter & Gamble, foreign profits are down by a quarter or more from their peak.

or the few examples of emerging market brands that have gone global such as China’s Lenovo which purchased IBM’s Thinkpad and India’s Airtel which bought into the African market.

What’s being touted as their competition are regional brands, who aren’t as stretch out globally in terms of their supply chains, and less vulnerable to currency volatility. Further, the majority of these global brands are heavily dependent on their B2C marketing and sales – the question of whether they ever managed to understand their new markets is a topic for another post.

And so, we ask, what will this mean for the emerging economies of Africa, who are only now seeing the first fruits of FDI? Who will come and develop their consumer markets?

India and China apparently. And strategically – through unbranded affordable commodities and the acquisition of successful regional consumer brands – rather than the legacy MNC approach influenced by Levitt. Even Japan recognizes this, as they seek to piggyback on the Indian experience.The economics of scale that propelled the first rounds of growth for the manufacturers of washing machines and the automobiles never did make sense infrastructurally for the majority of the African consumer markets.

Instead, the patterns pointed out by The Economist and Credit Suisse imply that opportunities will lie among regional stars – Equity Bank of Kenya, for instance, whose regional footprint is surely but steadily creeping outwards across the East African Community and trading partners – or, the telcom brands such as Tigo (Millicom) who innovate for each of their local markets.

The jobs and exports that can be attributed to multinationals are already a diminishing part of the story. In 2000 every billion dollars of the stock of worldwide foreign investment represented 7,000 jobs and $600m of annual exports. Today $1bn supports 3,000 jobs and $300m of exports.

Godrej, for instance would be considered a regional Indian giant rather than a multinational in the conventional sense of a Unilever or P&G.

Where [MNCs] get constrained is, they are driven by lot of processes that are global. For a smaller organisation like us, we are completely empowered; decision-making is quick and we can initiate changes very fast. We are more agile and have an advantage over them.

Yet their expansion outside India shows a “pick and choose” strategy of markets they’re comfortable entering.

The group’s acquisition strategy hinges on identifying unlisted companies built by entrepreneurs looking for capital, picking up stakes and working with them to scale up their businesses.

At least two homegrown Kenyan FMCG brands – skincare by a global giant and cosmetics by private equity – have been acquired. As have snack foods, spices, dairy products, and other products that cater to local tastes. The best known being Fan Milk of West Africa. Private equity such as Abraaj make no bones about going after consumer driven opportunities.

Given these choices, sustainable African businesses who understand their consumer markets have an opportunity to establish their brands and grow – with the financial help that’s strategically becoming available.While Chinese imports make the market highly competitive and price conscious, fish and tyres are substitutable goods in a way skincare and cosmetics are not.

African consumer companies – formal, informal, or semi-almost there-formal – need to hustle right now.

The retreat of the MNCs offers a chance to exhale, and expand, and grow, but the advent of the East implies waking up to the need for serious strategic thinking about domestic comparative and competitive advantage – one of which is incomparable knowledge of local consumers, culture, and needs, and critically, experience of their vast informal sectors and cash intensive economies.

A Precursor for Systems Design and Social Change from Finland

Sitra, the Finnish innovation fund, has released an excellent analysis and work plan for systemic change at scale – how to change the national mindset to become a society focused on sustainability and wellbeing.

I remember noting Finland’s leadership in systems design and strategic planning back in 2007 during our Cox Europe Mission to observe multidisciplinary creativity in business and higher education. One of the reasons, I still believe, why Helsinki became a World Design Capital.

This report considers the circular economy (or, REculture as I’ve often called it). While the whole document is entirely the work of Sitra, one cannot help but recognize the contributions made by Doblin, the pioneer of design planning back in Chicago. After all, all of us who were taught by Larry Keeley were introduced to the 10 types of innovation  page 44).

This gives me hope, as my team and I start exploring the method for triggering systemic change for an entirely different kind of complex, adaptive system – that common in the developing world context. This means that we can draw upon the lessons we learnt back in school and then seek to evolve them for the disparities in the operating environment.

Unlike Finland, where there is high trust in the system, and things run rather smoothly, even after the worst blizzard, the average rural market town in East Africa has unreliable and inadequate infrastructure, higher mistrust in systems, and almost no credible sources of historic data for any kind of trends analysis much less an easy and affordable way to monitor and evaluate anything less than highly visible (mobile phones) gross changes in the ecosystem.
sitraThus, while we can be inspired by this straightforward roadmap for the Finnish context, I already know that our progress will not be as simple or linear. Most likely we will have a lot more exploration and discovery, such as mapping the landscape, as well as needing to adapt our approach in conditions of greater uncertainty where planning is a challenge, and preparation means survival.

As a Finnish entrepreneur, I’m grateful for this contextual opportunity to be inspired by this living example even as I proceed further with my own work.

Innovation, Ingenuity and Opportunity under Conditions of Scarcity (Download PDF)

coverIn July 2009, I was inspired by working in the Research wing of the Aalto University’s Design Factory in Espoo, Finland, to launch a group blog called REculture: Exploring the post-consumption economy of repair, reuse, repurpose and recycle by informal businesses at the Base of the Pyramid*.

Within a year, this research interest evolved into a multidisciplinary look at the culture of innovation and invention under conditions of scarcity and it’s lessons for sustainable manufacturing and industry for us in the context of more industrialized nations.

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Emerging Futures Lab, July 2010 (Aalto Design Factory)

As a preliminary exploration, my research associate Mikko Koskinen and I timed our visit to Kenya to coincide with the Maker Faire Africa to be held on the grounds of the University of Nairobi in August 2010.

This photographic record of our discoveries (PDF 6MB) among the jua kali artisans and workshops of Nairobi, Nakuru, Thika, and Kithengela, guided by biogas inventor and innovator Dominic Wanjihia captures the essence of the creativity and ingenuity it takes to create without ample resources and adequate infrastructure.

A synopsis of our analysis is available here.

 

* The publishing platform, Posterous, died a short while later and we lost years of work. I’m looking into reincarnating REculture on Tumblr soon.

 

Does the human-centered design industry believe in it’s own process?

Generic diagram found online

Generic diagram found online

Listening to users, and incorporating their feedback is considered the key differentiator for the practice of human-centered design. Yet, one wonders, if the design industry has understood that this philosophy must necessarily include the feedback from their clients as well. That is, while we are all aware of the navel gazing tendencies displayed by design thinkers and writers, we very rarely come across any pragmatic criticism of the industry itself, and it’s approach and processes, by those purchasing their services.

Yesterday, during my reading on ‘Doing Development Differently’,  I came across an incisive critique of what can only be called Big Design, by Geoff Mulgan, the Chief Executive of Nesta – the UK’s innovation foundation. His insights are worth pondering.

design-industry

Source: Ben Ramalingam http://www.nesta.org.uk/blog/development-innovation-taking-high-road

One could almost interpret this as saying that human centered designers are unable to incorporate user feedback.

As Mulgan himself says on page 5:

I’ve several times sat in meetings with designers and design promoters, alongside policymakers, where the same pattern has repeated. The policymakers grudgingly accepted that they might have quite a bit to learn from the designers; but the designers appeared baffled when it was suggested that they might have something to learn from the policymakers, or from the many other organisations and fields with claims to insight into service design: social entrepreneurs, professions, consultancies, IT, policymakers. There are plenty of exceptions to this rule: but overblown claims that design methods are uniquely placed to tackle complex, holistic problems has not always helped to inspire a culture of collaboration and mutual learning.

When an overweening sense of one’s place on the team overrides ‘deep craft’, what are the future implications for the designer’s role in shaping their own environment?

And, what are the ramifications for the entire design industry, when Big Design’s Big PR hampers progress more than it helps?

5 examples of the breadth of African led human-centered design and thinking and planning

The other day I was searching for news on design from the African continent and noted on Twitter that it seemed as though only the South Africans were consistently talking about their various creative outputs. Having long been part of the crowd that believed in the indigenous creativity and innovation in the less visible parts of the world, I went digging to see if maybe it wasn’t the words that were important but the intent of the action.

Was there, in fact, evidence of people centred thinking and planning, and solution crafting, that was innovative or transformative? This is what I’ve found with just a couple of days of desk research, I expect there’s much more out there and this is only the tip of the iceberg.

South Africa: What was designed to exclude can be redesigned to include

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Papwa Sewgolum Golf Course © Johnny Miller / Millefoto

During apartheid, barriers were both constructed and modified to segregate urban spaces—roads, rivers, and large stretches of open land separating rich neighborhoods from the poor. Twenty-two years later these barriers still exist, large homes with lush lawns just a few yards away from tightly-packed communities organized with dirt roads rather than tree-lined streets. Photographer Johnny Miller wanted to capture the dramatic divide from a new perspective, and decided to shoot many areas in South Africa from several hundred feet in the air for a series titled “Unequal Scenes.”

Miller’s photographs went viral as evidence of the inequality inherently embedded in the design of the landscape. Now, the City of Johannesburg is talking about redesigning apartheid’s spatial design:

The city is trying to achieve this through its spatial development strategy dubbed the ‘Corridors of Freedom’ to eliminate sprawling low-density areas without practical public transport networks.

The City of Johannesburg’s executive director for development and planning, Yondela Silimela, says suburban living is not efficient, as leisure amenities are shared by few people. The proposal by the city is urban mixed-use areas that promote shared public spaces such as swimming pools and tennis courts between the rich and poor, to close the widening inequality gap.

 

Government of Rwanda’s political will to enhance citizen-centered governance

In Rwanda, however, the people centric policy design has entered the realm of the intangible – pushing the envelope of design thinking as far as any Nordic city. Taxation policy is to be reconsidered after a User Perception Survey, and an ambitious plan for leadership commitment has been launched by the president for people-centered development. We have hopes of a design policy lab being pioneered in Kigali.

 

Namibian invention disrupts mobile technology

petrus-simon

Petrus Simon with his invention

More pragmatically, a young Namibian figured out how to make mobile phone calls without the need for a SIM card. Luckily, this achievement of his captured the media’s imagination, catapulting him into the limelight and garnering him a scholarship in technology at any university of his choice from the local telco. If every young African inventor received the same, the landscape of STEM would change across the continent.

Ekandjo revealed that the company does not usually fund learners from grade 12, but MTC  is proud to make an exception.

Last year Petrus won a gold medal at the NamPower national schools’ competition, after he invented a machine that serves as a seed drier and cooler.

 

Kenyan Andrew Kio saw the unmet need for African sizes in clothing

 “There are no standard sizes for Africans like the way people walk into shops abroad and you are asked whether you are a size 12 or 14 and such like things.”

Kio did basic market research to help him carve out a niche for himself in the market given that most people then still had a preference for imported jeans, despite the fact that they did not fit properly. He learnt that women have the most problems. He had found his entry point. Kio then went and bought some pairs of women’s jeans, ripped them apart and studied their designs carefully.

Blacjack now has six full-time employees and Kio has recently bought new machines to keep up with demand. Blacjack dresses KFC and Kengeles staff and recently signed a deal with French retailer Carrefour, which has debuted in Kenya. He also imports Woodin designer African prints from Ghana for uniquely African jeans. Source

 

Which segues nicely into the recently launched initiative by the AfDB called Fashionomics – complete with a B2B platform for pan African SMEs. We keep our fingers crossed that creative entrepreneurs like Andrew see the fruits of all this hard work.

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People-centered systems design thinking out loud

feature_jaimeThis morning I was pondering the complexity involved in weaving together four separate threads of ‘innovation’ into one holistic system. They were not unrelated to each other, and the end users are more or less the same for each, but each is also a standalone solution to a pain point in an ecosystem. I was tinkering with the idea of trying to knit them into one – would it be far too complicated, both to implement, and to develop conceptually? Or, would the complexity be worth the additional headaches because the outcome would be well worth the effort of integration into a holistic and seamless concept?

From the product development point of view, the research question is whether an integrated, seamless solution is more viable and desirable than four standalone solutions developed by individual teams, in parallel, within the same ecosystem, and for the same target audience. Feasibility is the question being evaluated, from the value for money perspective. Of course it could be tried, that’s the beauty of design – one attempts to build prototypes to test one’s paper based theories to see if they break in the real world. But was it worth the time and resources to build the prototype in the first place?

It was while grappling with this minuscule yet wicked problem that I was reminded of a gentleman I once heard speak at the Better World by Design conference in Rhode Island about 8 years ago. Jaime Lerner is very well known to urban planners and city designers, I’m sure, but perhaps not as familiar a name to the rest of us. He conceived the idea of the city as a living, breathing, organic system – a turtle, as you can see in the diagram above. Life, work, movement, are all integrated together.

While the systems design challenge I’m pondering is more technology based, as is usually the case in today’s world, and not a cityscape, I believe that one can take away some powerful insights from Mr Lerner’s philosophy for design planning for a complex human ecosystems. In this context, its the informal and rural economic system prevalent in the developing world. Not unlike Brazil, where Mr Lerner perfected his vision.

Commerce in the informal sector is a living, breathing, organic ecosystem made up of human beings in flexible, negotiable, and thus, reciprocal relationships with each other. Much of the groundwork for this conclusion can be discovered in the reports linked to here. If we set aside the cityscape, and consider the essence of Mr Lerner’s philosophy, we see that his three key concepts are life, work, and movement.

In the context of the informal valueweb, movement could be considered with far more layers of nuance than simply transportation or mobility as one would in the context of urban planning. And, in the context of an ecosystem, it could be stretched to cover the flows of value in between the nodes in a value web – these we’d earlier identified as information, goods, services, and currency. That is, movement is the lifeblood of the organic network, the transactions that take place, and most importantly, the element of give and take which distinguishes human to human interactions.

Thus, if we were to step back from the design of the details of such a complex human interaction system, we too could conceivably think of it as living organism – perhaps not a turtle, which is a better metaphor for a city; perhaps there’s some other metaphor waiting for us to stumble over. In the meantime, I do wonder if we have the underlying philosophy for the design of complex, interdependent human interaction systems?

 

Previously.

There’s more to informal trade than meets the eye

biashara

Busia, Kenya 2nd February 2016 Photo Credit: Niti Bhan

This photograph captures the way micro entrepreneurs in the informal economy perceive their business. There is more here than meets the eye at the first instance. Note the green logo of the Kenyan mobile money transfer system M-Pesa in the background of the cash transfer taking place, by hand, in the foreground.

The customer is the lady in the beige dress on the right hand side. She probably needs small change that the market woman selling tomatoes might not have had on hand. The lady “next door” passes the change, and the two businesswomen will settle up later.

Can formal business processes allow for the flexibility of an instant cash advance to the shop next door?

Design research as a method for discovering & understanding the world around us

Variously known as User Centered Design (UCD) or Human Centered Design (HCD), the fundamental philosophy underlying the designer’s approach to problem solving is that of discovery – “figuring out how to make something that will work in this context”.

Innovation, invention and novelty rarely have pre-scripted processes due to the as yet unknown, and often, uncertain nature of the outcome. The design process acknowledges this by embedding various techniques for discovery of the problem space as well as the possible solutions.

These include:

  1. Exploration –  1. the action of exploring an unfamiliar area. 2. the thorough examination of a subject.;
  2. Prototyping –  an early sample, model, or release built to test a concept or process or to act as a thing to be replicated or learned from;
  3. Iteration –  the act of repeating a process with the aim of approaching a desired goal, target or result (2);
  4. Experimentation – a procedure carried out to verify, refute, or establish the validity of a hypothesis. May vary greatly in goal and scale, but always rely on repeatable procedure and logical analysis of the results.

This post was inspired by a twitter conversation with Dr Dan Lockton. It is the first of a series of explorations on our adaptation and evolution of the methods available for design research as tools for discovery and understanding where data may be inadequate or non-existent such as the informal economy in emerging African economies.

Please use the category UCSD to discover more on this subject.

Roadmap for reverse innovation – how to leverage context for disruption

Vijay Govindarajan and Amos Winter have an interesting article in the July/August issue of Harvard Business Review. They identify the barriers to successfully integrating reverse innovation from emerging markets into the product pipeline for mainstream consumer culture. Their key paragraph echoes the issues of people, pesa and place I’d written about earlier:

Our research suggests that the problem stems from a failure to grasp the unique economic, social, and technical contexts of emerging markets. At most Western companies, product developers, who spend a lifetime creating offerings for people similar to themselves, lack a visceral understanding of emerging market consumers, whose spending habits, use of technologies, and perceptions of status are very different.

And they go on to identify the common mental traps that act as barriers to innovation.

As we will show in the following pages, the reverse innovation process succeeds when engineering creatively intersects with strategy. Companies can capture business opportunities only when they design appropriate products or services and understand the business case for them.

I’ve annotated the design principles developed by an engineer and a strategist with a soupçon of human centred design *cough* thinking below:

Trap 1: Trying to match market segments to existing products.

Design Principle 1: Define the problem independent of solutions.

Tech driven innovationCompanies tend naturally to look at opportunities from the perspective of their the product lines, placing their technology front and center of their opportunity assessment. Govindarajan and Winter suggest stepping back to evaluate the landscape of the operating environment for which they wish to innovate.

Trap 2: Trying to reduce the price by eliminating features.

Design Principle 2: Create an optimal solution, not a watered-down one, using the design freedoms available in emerging markets.

torchlight-phonesWhich designer sitting in the comfort of the developed world’s stable and reliable infrastructure would have thought of adding a torch to a mobile phone if Nokia’s exploratory user researchers had not observed people’s behaviour? In developing countries with inadequate infrastructure, power cuts are a frequent occurrence and the bright screen of the device in your pocket was being used by people to find the keyhole in the door.

Trap 3: Forgetting to think through all the technical requirements of emerging markets.

Design Principle 3: Analyze the technical landscape behind the consumer problem.

This is really why a landscape map of the operating environment is critical (and yes, I’ll be following up with a post that explains a landscape map). No-one can remember all the constraints and criteria for product design in environments of scarcity and variance in infrastructure. Whirlpool was one of the first to discover this with their World Washer designed specifically for emerging markets 25 years ago. From Govindarajan and Winter:

When designing offerings for the developing world, engineers assume they’re dealing with the same technical landscape that they are in the developed world. But while the laws of science may be the same everywhere, the technical infrastructure is very different in emerging markets. Engineers must understand the technical factors behind problems there—the physics, the chemistry, the energetics, the ecology, and so on—and conduct rigorous analyses to determine the viability of possible solutions.

It boils down to listing assumptions and questioning them rigorously, something engineers are already accustomed to doing. And, now, my favourite of all these traps and principles.

Trap 4: Neglecting stakeholders.

Many multinationals seem to think that all they need to do to educate product designers about consumers’ needs and desires is to parachute them into an emerging market for a few days; drive them around a couple of cities, villages, and slums; and allow them to observe the locals. Those perceptions will be enough to develop products that people will purchase, they assume. But nothing could be further from the truth.

Design Principle 4: Test products with as many stakeholders as possible.

Companies would do well to map out the entire chain of stakeholders who will determine a product’s success, at the beginning of the design process. In addition to asking who the end user will be and what he or she needs, companies must consider who will make the product, distribute it, sell it, pay for it, repair it, and dispose of it. This will help in developing not just the product but also a scalable business model.

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Complex Value Web of Transactions in Cash, Kind and Information. Sketch: Michael Kimani

There are two key assumptions embedded in Trap #4 and its supporting Design Principle. These are:

1. End users are individual actors.
2. That the ecosystem is a conventional value chain

This may be true in the highly individualized mainstream consumer culture of “the West” where the bulk of consumer facing organizations and their designers head quartered. In most of the developing world, users – people – are part of a closely networked community, more true the lower down the income stream you go. Not only must organizations consider the entire ecosystem in which their new product or service will be introduced but they need to consider the individual customer’s social and communal ecosystem as well.

Understanding Users

The Individual as an Ecosystem Sketch: Jeroen Meijer

In fact, as we discovered in the last mile, the value chain is actually a complex value web with overlapping nodes and roles – a community of trust, social capital, information flow and opportunity networks.

Overlooking these characteristics and constraints, that too in the context of the informal and/or rural economy, where transactions are mostly in cash or kind, with few formal financial instruments, has impact on the design of the business model and payment plans as well, not just that of a tangible artefact.

Which leads us to the final and most important point being made by Govindarajan and Winter:

Trap 5: Refusing to believe that products designed for emerging markets could have global appeal.

Design Principle 5: Use emerging market constraints to create global winners.

Though most Western companies know that the business world has changed dramatically in the past 15 years, they still don’t realize that its center of gravity has pretty much shifted to emerging markets. China, India, Brazil, Russia, and Mexico are all likely to be among the world’s 12 largest economies by 2030, and any company that wants to remain a market leader will have to focus on consumers there. Chief executives have no choice but to start investing in the infrastructure, processes, and people needed to develop products in emerging markets.

And, critically, India, China, Brazil and Russia, among others, are all eyeing the opportunities in the emerging economies of the African continent. Understanding these challenging conditions and satisfying the demands of these connected consumers will become all the more crucial going forward.

The values gap in banking the unbanked

Back in 2008, after my first deep dive into the African consumer market, on behalf of Samsung, I’d identified something I called the “values gap” as an intangible barrier between the first world’s consumer brands, and the mindset and worldview of the majority market, then referred to (erroneously) as the “Bottom of the Pyramid.”

The value propositions of the producers immersed in mainstream consumer culture – “buy now; pay later”, “new and improved” or “throwaway and replace”- fell far short of the mark when it came to reaching the emerging consumer markets of frontier economies.

Overlooked by marketing communications and the messaging of the advertising industry for generations, these new consumers were not conditioned to respond to these familiar messages. In fact, their buyer behaviour – their “consumption values” if you will – resonated more with almost the exact opposite responses – “minimize risk; maximise returns”, “tried and trusted”, or “repair and reuse”.

These choices were the outcome of their environment of uncertainty, and often, adversity; of inadequate infrastructure and, incomes which tended to be irregular and unpredictable. Without access to consumer credit, their purchasing patterns were driven by their cash flow, and an environment of resource scarcity influenced their consumer behaviour.

This gap in mindset and in values meant that the value proposition of a product or service or even a business model was ignored for the most part, as noise. “Not for the likes of us” as some had said, in India, in South Africa, or in The Philippines. The irony, in some cases, was that even when the product or service was meant specifically for the lower income segment or for those in the cash based informal sector, the way it was advertised overshot the target it was intended to reach.

An example of this is Wizzit, a South African mobile bank designed for the erstwhile Base of the Pyramid (BoP) customer. Unlike traditional banks with their reams of required paperwork, most of which were unavailable to the BoP customer, all you needed to open a Wizzit account was your mobile phone number and your ID. You didn’t even need any money, nor were you penalized if the account was empty or left unused for 6 months.

You would think that everyone would open an account as soon as they’d heard about it? Well, it didn’t happen that way.

Wizzit’s marketing messaging focused on the value proposition of “mobile” as interpreted for the first world or privileged customer – “Now you can bank on the go”

Imagine someone who had never thought that they could qualify for a bank account hearing or reading that value proposition? “Its not for the like of us” and tune it out.

If the messaging had touched upon the value proposition embedded in the product’s design – ALL you need is a phone number and your ID and YOU TOO can have a bank account – their audience would have immediately recognized its relevance to their own context. “Hey, I can qualify for this bank account, let me go find out more”

As simple as that.

When the value proposition of the producers immersed in mainstream consumer culture don’t resonate with the world view and mindset of the customer, there’s a gap that cannot be crossed no matter how hard you try. This values gap manifests itself in the product’s design, its marketing communication, distribution strategy, and sales promotions.

And its not just consumer products or services that fail to bridge the chasm. Wherever you seek to lower barriers to adoption and minimize the dropout rate – promoting a new irrigation technique, for instance, or adoption of formal financial services – bridging this gap is key to success.