Emergent DemocracyEnabling An eGovernance Ecosystem

Rajesh JainNetcore Solutions

Tel: +91 (22) 5662 8000 Fax: +91 (22) 5662 8134

Email: rajesh@netcore.co.in

Personal Weblog: http://www.emergic.orgCompany Website: http://www.netcore.co.in

I have a vested interest in the future, because I plan on living there.

- Neil Gershenfeld (MIT Media Lab)

Imagine the Future...

● Growth of 10%+● Double Per Capita Income to Rs 25,000 p.a. in 3-

5 years● Employment Generation● 100% Literacy and Computer Literacy● Leadership in IT● Transparency and Accountability in Governance● Increase People's Self-belief and Self-confidence● Entrepreneurial and Community-driven initiatives

...and Fold the Future In

● Enable Emergent, Democratic, eGovernance Ecosystem– Emergent: bottom-up; whole is greater than sum of parts– Democratic: Built with, for people; 2-way information flow– eGovernance: eServices for Citizens, Businesses; SMART– Ecosystem: self-sustaining, replicable, viable

● A Connected Computer accessible to every employee and family– Mass-Market Tech Utility (via Takniki Pragati Kendras)– Intelligent, Real-Time Governance

My Beliefs● Biggest Force is “10X Vision”

– Imagine a different future, and then go out and build it

– Technology creates discontinuities and leapfrog opportunities

● Emerging Markets: Technology's next markets– Bridge digital divide; Target bottom of the pyramid

● 4 billion users and 25 million SMEs globally– Needed: low-cost, affordable solutions, with minimal R&D costs

– Lag hardware by one generation; use latest software and communications

● Mass Access to Computing and Internet can enable the New India – A passport to a better life, a growing business; hope for better tomorrow

– Provide growth and employment opportunities

● We have to build the New India

Key Building Blocks: 3 L’s + 3 W’s

● Low-cost Computing: The Rs 5,000 PC● Linux: Open-source software base● Local Language: Beyond English

● WiFi: Open spectrum for connectivity● Web Services: eBusiness Applications Platform● Weblogs: Harness tacit knowledge; voices from

within

Mass-Market Tech Utility

A Vision for a Digitally Bridged Society

The ICT-Digital Divide Story So Far

● No shortage of ideas or success stories– Gyandoot, Warna, Bhoomi, eSeva...

● Need, Vision and Will are there● In many cases, so are the Resources● Yet: Why isn't India Digitally Bridged by now?● Something is missing

– Business Model? Scalability? Sustainability? Replicability? Commercial Viability?

The Problems

● Thinking: Pilots, Prototypes, Demos, Showcases● Solutions are being created in silos, in “niches”● Our vision is too narrow and small● Mindset is focused on incrementalist innovation …● … when the need is for “disruptive innovations”● We are not thinking in terms of “mass-market”...● ... or in terms of replicability for millions

The Real Digital Divide is between

Envisioners, Technologists and Implementers

What's Needed in ICT Solutions

● Mass-Market: for tens of millions of people● Scalable: can be replicated rapidly● Emergent: bottom-up, entrepreneur-driven● Low R&D Costs: don't recreate but aggregate● Extremely Affordable: we are still a poor country● Technologically forward-looking: nothing less!● Leapfrog: more than just catch-up● Platform-orientation: to enable an ecosystem● Commercially Viable: a business model

Vision Redux: Digitally Bridged MP

● A connected computer accessible to every family● Everyone is literate and computer-literate

– Can email, browse, search, compose letters, fill forms– Computing taught and available in every school

● All Citizens have access to eServices for government interactions

Technology as a Utility

for the Bottom of the Pyramid

Four Characteristics of a Utility

● Commonplace– It is ubiquitous, accessible and virtue– We only know of its presence when it doesn't work

● Affordable– Payment is by use, on a "subscription" basis

● Reliable– It does not "crash"

● Mass Distribution Framework– There is a Network, which lets the utility be available

everywhere

To build the New India and New MP,we need a Tech Utility.

To make this a reality and to bridge the digital divide, we need Disruptive Innovations.

The Great Leap: Driving Innovation from the Base of the Pyramid

● Disruptive Innovations compete against nonconsumption – that is, they offer a product or service to people who would otherwise be left out entirely or poorly served by existing products and who are therefore quite happy to have a simpler, more modest version of what is available in the high-end markets.

- Stuart Hart and Clayton Christensen (Sloan Management Review)

5KPC as Disruptive Innovation

● Imagine the Rs 5,000 Personal Computer (5KPC)● 5KPC as a network device (like cellphone, TV)● Recycle older computers as desktop PCs● Can optionally use TV as monitor● Sealed Endpoint – zero-maintenance● Centralised storage and computing (Thick Server)● WiFi to extend 5KPCs into neighbourhood areas● Targets “Non-consumption”

The 5KPC is at the heart of the Tech Utility

The Tech Utility Challenge

● 10 Basic Services for a small, fixed, monthly fee – Mandi, Grievance Redressal, Forms, Certificates– Khasra, Exam Results, Email and Internet Access– Literacy Programs, Training, Health information

● Additional services will cost extra● Free: Computers for local school● A Platform for developing other services● Easy-to-use interfaces● Simple to manage and support remotely

The Solution: TeleInfoCentresTakniki Pragati Kendras

● Computer and Communications Centre– Cluster of 5 or more computers (can be old PCs also)– Email; Instant Messaging; Web Browsing; Printing– Server-Centric Computing and Storage– Support for Local Languages– Content and Applications Mirrored on Local Server– Software Distribution; Last Mile Bridge

● Hub-and-Spoke Extensions● Neighbourhood Wireless Network● Enabling eCommerce / eGovernment / eServices

The TeleInfoCentre

● 1 Server (Rs 30,000) + 4 Thin Clients (Rs 10,000 each)● Software, LAN, Scanner, Printer, Webcam (Rs 25,000)● WAN Connectivity: Dial-up, WiFi, WLL● WiFi Hub: Rs 7,000; Each Card: Rs 4,000● Also: TV, Radio, Fax Machine+Copier, Phone (PCO)● Power: UPS or Car Battery (Rs 5,000) or Solar Power● Powered by Linux Terminal-Server Software● All Basic Apps: Browser, Email, Office suite, IM● Support for English and Hindi● Entrepreneur-driven (by Prerak)

What else can a TeleInfoCentre do?

● Gyandoot+eChoupal+Jan Shikshan Kendras, rolled into one ● Digital Library: Content on local hard disks, updated periodically

by CD (until high-speed Net access is available)● A Citizen Community Weblog to discuss priorities/initiatives● Instant Business Office for businesses / entrepreneurs● Wireless Access Point: to enable 5KPCs elsewhere in the vicinity

(homes, hospital) to connect into network● Software Applications locally: pay-per-use, for accounting,

agriculture, village planning● Storage Space for Documents: land records, certificates, etc.● Microcredit Centre (via Smart Cards); Marketplace for local crafts● Classifieds, Local News, Feedback on Govt Schemes…

Solution Differentiators

● Rs 5,000 computers vs Rs 50,000 computer● Linux/Open-Source vs Proprietary software● TeleInfoCentre in each village vs Kiosk across

many● Wireless (WiFi/WLL) vs Wired connectivity● English and Hindi vs English only● Multi-functional vs Uni-functional● User-generated content vs top-down broadcast● Fixed cost for basic services vs pay-per-service

The Economics

● Startup-costs for 5-computer centre: Rs 1,20,000 ● Monthly running costs: Rs 4,500 (salary,

connectivity, maintenance)● 3-year TCO: about Rs 2,80,000

Monthly cost: Rs 8,500● 1 TeleInfoCentre supports 1,500 people (350

families)● Cost per family: Rs 25 per month (or lower)

How to make this work?

How much is Rs 25 per month?

● MP Per Capita Income: Rs 12,000 p.a. (Rs 1,000 p.m.)

● Avg Income for family of 4: Rs 4,000 p.m.● At the bottom-end, take half of this: Rs 2,000

p.m.

Will this family spend Rs 25 per month / Re 1 daily?

They will spend Rs 25 per month IF

● It can offer hopes of additional income (growth in livelihood)

● It can remove pain from their lives (government interactions)

● It can improve their skillsets (learn to do things better, retraining)

● It can make them more productive (agriculture, crafts)● It can offer their children a brighter future (education,

jobs)● It can provide them a voice to and response from

government within a specified time period

Can this Rs 25 figure be reduced?

● Yes, by offering additional services at TeleInfoCentre– Advertising: a platform for rural marketing– eCommerce: can aggregate buyers to lower prices– Data Entry (since there are multiple computers now)

● Also consider:– Existing older PCs can be re-used as “thin clients”– Computer Costs amortized over 3 years only– Schools get computers for free

Make Colleges part of the Ecosystem

● Students can help provide Linux support ● Appropriate projects for final-year engineering

students● Others help in content development and creating

of training modules● Creates an IT talent base for businesses● Leadership in open-source software development● An “Innovations Fund/Contest” - for the best

“Stimulate the Creativity of the Young Human Mind”

Next Steps● Set up TeleInfoCentres in selected villages

– Bottom-up demand-based model like EGS ● Apply the 80-20 rule: 20% services; 80% impact● Leverage MP's strength: Rapid Decentralised Execution● A platform for add-on services: content and applications● Show entrepreneurs a business model (“franchise”)● Make it self-sustaining; No government subsidies● Target scale-up: 10,000 TeleInfoCentres in a year and

take it to every village in the next 5 years

Ambitious? Yes. Doable? Yes. We are the government, right?

Intelligent, Real-Time Governance

Unleash the Power within

A Government is like a large, multi-locational Enterprise

Think of an Intelligent, Real-Time Enterprise...

...and apply these ideas to create an Intelligent, Real-Time Government

The Intelligent, Real-Time Enterprise

• [A real-time enterprise is] a company that uses Internet technology to drive out manual business processes, to eliminate guesswork, and to reduce costs.

• The key feature of a real-time enterprise is spontaneous transaction flow.

– Ray Lane, General Partner, Kleiner Perkins

IRTE Characteristics

● Computing and Communications available to every employee

● Superior Information Availability across the Value Chain

● Streamlined Business Processes using the Web● Lower Inventory through improved Analytics● Data entered only Once● Single Interface to all Applications

Source: E-business: Roadmap for Success by Ravi Kalakota

The Intelligent, Real-Time Government

● Computing and Communications available to every employee

● Superior Information Availability across the Value Chain (state, panchayats)

● Streamlined Business Processes (back-end automation) using the Web

● Lower Inventory (Delays) through improved Analytics● eProcurement, to ensure transparency and speed● Data entered only Once● Single Interface to all Applications

“A corporate atmosphere with a social bias”

The 4 Pillars of IRTG Architecture

● Messaging and Internet Access for all employees● Computing for all● Collaboration and Knowledge Management● Business Process Automation

Messaging

● Email ID for all● Instant Messaging● Internet access at every location● Global Address Book● Integration with Cellphone/SMS for real-time

alerts

Computing for All

● A Rs 5,000 PC for every employee● Reuse older, existing computers● Limited base set of applications on desktops

– Email, Browser, Office suite, IM● Based on Linux and Open-Source● Support for English and Hindi● Mandatory Computer Training

Collaboration and Knowledge Management

● Make people individually more productive● Make teams work together more efficiently● Support Decision-making and Workflow● Digital Dashboard: one screen to rule them all● Harnessing Tacit Knowledge through Weblogs

Business Process Automation● Manage Money (Accounting) and Citizens/Businesses

(CRM)● Focus on the core processes and “events”● Exception-Handling, not routine management● Two-way information flow (state <-> local bodies)● RosettaNet for standardising Industry Interactions● Integrated Databases (“only handle information once”)● eProcurement – centralised, electronic purchasing● Involve engineering college students and local software

cos. for applications development● Software: Web Services and Open-source based

The Result: Emergent Democracy

● MP's Digital Nervous System● A Digital State in 2-3 years● Reduced information asymmetry between administration

and citizenry– Will increase transparency and accountability, and reduce

corruption● Government functioning like efficient enterprises● Limited Legacy, so can Leapfrog other states● Creates a local IT infrastructure / ecosystem ● Real-time feedback on schemes and problems● SMART Governance

The Economics

● Technology Cost: Rs 500-700 per person / month● If employees can be made 10% more productive,

it will payback immediately

How do we make this happen?

Execution

● Think Big, Start Small and Scale Fast● Will+Vision, and Entrepreneurial Thinking● Dan Bricklin's Comment“In big business, when you need to cross a river, you simply design a

bridge, build it, and march right across.

But in a small venture, you must climb the rocks. You don't know where each step will take you, but you do know the general direction you are moving in. If you make a mistake, you get wet. If your calculations are wrong, you have to inch your way back to safety and find a different route.

And, as you jump from rock to slippery rock, you have to like the feeling.”