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Deblina Chakraborty

In working to bring technology to developing countries, people often think big: classroom computer systems, state-of-the-art farm equipment, and the like. But Bentley’s Alina Chircu says the key to technological advancement may come in a much smaller package.

The associate professor of information and process management has spent five years studying how technologies are adopted in emerging economies such as India and China. Her research identifies a staple of everyday life in the developed world — the cellphone — as a prime conduit in the process.

“Internet and electronic commerce adoption are happening through mobile phones — not computers and broadband connections,” reports Chircu, who holds a PhD from the University of Minnesota–Minneapolis and joined the Bentley faculty in 2008. “In a lot of places, the mobile phone is replacing the computer as the preferred device for accessing the Internet.”

As her research progressed, Chircu found mobile phones being used in scores of situations. Farmers, for example, use their phones for everything from researching best practices to checking crop prices. Traditional holiday greetings have also received a modern makeover. In China, during the 2011 Spring Festival alone, well-wishers exchanged 26 million text messages.

These findings on mobile technology and service adoption in developing countries informed a paper by Chircu and a colleague at the University of Texas–Austin. Their work was published in the Journal of Product Innovation Management in 2009. But Chircu stayed on the case.

“I wanted to continue looking at the question of design,” she explains. “If you’re a mobile phone manufacturer, how do you produce devices that will be useful, adopted and within the purchasing power of people in developing countries?”

Digging into Design

The questions inspired a second research project that addresses issues of cost, infrastructure and sustainability.

“As mobile phones are adopted at higher rates, you have two problems,” says Chircu, noting that 73 percent of the world’s 4.6 billion mobile subscriptions are in developing countries. “The first is reaching populations where incomes are not high enough to buy devices that the developed world can afford. The second issue is the sheer number of devices. Depending on design and processes for recycling, they might lead to a lot of techno trash.”

Her research included interviews at one of the largest companies that produces mobile devices, as well as analyses of news reports and press releases, to learn about design, pricing and distribution practices in developed and developing countries. For the sustainability piece of the study, Chircu chased down relevant reports by mobile phone manufacturers, and analyzed their strategies and accomplishments.

“In general, the data show that companies can be successful developing products for low-income populations in the developing world,” she says. “They just have to approach it correctly and understand the limitations of the operating environment.”

Low cost, high reliability, and value-added features and services are key criteria, according to Chircu. “Delighting first-time users of lower-priced phones transforms them into loyal customers, who will upgrade to more expensive models as their economic condition improves.”

Call to Arms

Many of the limitations relate to infrastructure. In areas where electricity may be hard to come by, for example, manufacturers may devise alternative phone-charging methods such as using power from a car battery. A company might also collaborate with village shopkeepers, to make cell phones, pre-paid minutes and electricity available in one centralized spot.

“It seems to work well for companies to develop distribution channels for the product they sell, as well as channels for the product’s maintenance,” observes Chircu.

On sustainability, the picture is still evolving. Many companies already employ environmental safeguards such as monitoring their suppliers’ compliance with regulatory requirements. Designing sustainable products is a logical next step, she says, highlighting recent moves to “minimize the use of rare materials; produce phones that use less energy; and come up with a universal charger, so there’s no waste.”

Paging the Inner Geek

Chircu’s working paper, “Sustainable Design for Developing Countries: Lessons from the Mobile Phone Industry,” outlines some of these ideas for the benefit of fellow academics and for industry professionals. She has shared the findings at Bentley and in other settings, including an international symposium on sustainable value chains. 

“This idea of new product and innovation management for the developing world resonates with a lot of American companies, because many of these countries are emerging, high-growth markets,” Chircu says. “If you know how to create products for them, you’re going to benefit in the future.”

One personal benefit is finding an avenue for combining her techie, computer science background with her knowledge of business information systems.

“It goes back to my geek roots,” Chircu says of the research, which she often brings into discussions with her master’s-level business process students. “New technology excites me, and its combination with practices is very interesting.”