Technology and Global Development
15-502
Instructors:
M. Bernardine Dias and Yonina Cooper
TA: Aysha Siddique
Spring 2009
Lecture 12
Fortune at the BOP
Outline
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Logistics
Video
Fortune at the BOP
Your assignments
for the next 2 weeks
Logistics
• Participation in trustee reception
• Change in schedule
• Questions/comments?
Video
Paul Collier
“4 ways to improve the lives of the bottom billion”
• Paul states that to give hope to the billion living at the bottom
he proposes an 'alliance of compassion and enlightened selfinterest'. What did he mean? What example did he use?
• According to Paul there are 4 areas needed for effective
policies. What are they?
• Which of these does he then choose to discuss? Why?
• What is the 'resource curse'? When does this occur? Why
(according to Paul)?
• What was the effect of democracy on resource booms? What
aspect of democracy seemed to do the most damage?
• What is his solution?
Fortune at the BOP
References
• http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
• http://www.sustainabledevelopment.in/events/pdf/CII_T
he%20Fortune_Base_Pyramid_07.pdf
• http://www.it.iitb.ac.in/~it625/lectureslides/Disruptive%2
0Tech%20and%20Bottom%20of%20Pyramid.pdf
• http://pdf.wri.org/whatworks_serving_profitably.pdf
• http://www.wdi.umich.edu/files/Research%20Initiatives/B
ottom%20of%20the%20Pyramid/Mirage%20at%20the%20
bottom%20of%20the%20pyramid.pdf
• http://www.nextbillion.net/files/Prahalad%20%20Response%20to%20Mirage%20at%20the%20BOP.pdf
The Market at the BOP
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Some Things to Re-examine
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Assumption #1
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Assumption #2
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Assumption #3
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Assumption #4
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Assumption #5
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Assumption #6
The poor are not our target consumers because with our current cost structures,
we cannot profitably compete for that market.
The poor cannot afford and have no use for the products and services sold in
developed markets.
Only developed markets appreciate and will pay for new technology. The poor
can use the previous generation of technology.
The bottom of the pyramid is not important to the long-term viability of our
business. We can leave Tier 4 to governments and nonprofits.
Managers are not excited by business challenges that have a humanitarian
dimension.
Intellectual excitement is in developed markets. It is hard to find talented
managers who want to work at the bottom of the pyramid.
http://www.abeson.org/docs/Abeson_ICU_CLASS.pdf
Assumptions and Implications
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
So what is the real BOP market?
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
So what is the real BOP market?
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Market Development
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Market Development
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Market Development
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
12 Principals of Innovation for
BOP Markets - Prahalad
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
12 Principals of Innovation for
BOP Markets - Prahalad
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
12 Principals of Innovation for
BOP Markets - Prahalad
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
12 Principals of Innovation for
BOP Markets - Prahalad
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
12 Principals of Innovation for
BOP Markets - Prahalad
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
4 Opportunities
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Implications
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Implications
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
Implications
http://www.eng.nus.edu.sg/etm/Documents/fortune.pdf
In His Own Words
http://www.youtube.com/watch?v=79JOHMrs8m4
What Next?
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Economics and Microfinance
No class next two Thursdays
Final project handout next Tuesday
Assignments:
– Due Next Tuesday
• View
http://www.youtube.com/watch?v=By6qtBafak8
http://www.youtube.com/watch?v=oYtfviYA38Q
http://www.youtube.com/watch?v=J4wxo5IHpT0
– Due Next Thursday
• Homework # 3
– Due Tuesday After Next
• Read
http://extension.osu.edu/~hcrd/people/staff/Sachs-End%20of%20Poverty.pdf
• View
http://www.ted.com/index.php/talks/bill_clinton_on_rebuilding_rwanda.html
– Due Thursday After Next
• Campaign Assignment
– Preparation questions on all reading and viewing assignments are available on the
course website in the “assignments” section.
• Special note: first do the reading/viewing and then look at the questions and come
prepared to discuss them in class.