Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Business Management Models Business Management Models for Telecentersfor Telecenters

Business Management Models Business Management Models for Telecentersfor Telecenters

DOT-COM-ALLIANCE (Digital Opportunity through Technology and Communication):

Access and Applications USAID PROGRAM(www.dot-com-alliance.org/dotorg.htm)

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

The LearnLink ExperienceThe LearnLink ExperienceThe LearnLink ExperienceThe LearnLink Experience

LearnLink’s Goal: Explore models for

sustainable public access to IT

Help integrate IT into USAID Mission project portfolios

Share lessons learned

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

A Typology of ModelsA Typology of ModelsA Typology of ModelsA Typology of Models

“Adoption” Governmental

Commercial School

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

The “Adoption” ModelThe “Adoption” ModelThe “Adoption” ModelThe “Adoption” Model

NGO or local community group sponsors Objective is service, not profit Fee-for-service to cover operating costs

Examples: Songhai Center

in Benin Multiple NGOs

in Ghana

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

The Governmental ModelThe Governmental ModelThe Governmental ModelThe Governmental Model

Government subsidy for public access Objective is development, equity Often fees are prohibited Examples:

Asuncion, Paraguay

U.S. Public Library model

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

The Commercial ModelThe Commercial ModelThe Commercial ModelThe Commercial Model

Local entrepreneur opens facility Objective is profitable business No special brief for development

applications or content Examples:

Bulgaria, Haiti Business centers Cybercafes

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

The School ModelThe School ModelThe School ModelThe School Model

School-based computer “labs” sometimes open to local community

Objectives: education, job preparation

Some systems charge fees Examples:

Guatemala, Morocco, Namibia, Uganda

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Some Common LessonsSome Common LessonsSome Common LessonsSome Common Lessons

Plenty of demand, acceptance Community involvement helps All the models can work Most problems “institutional”, not

technical

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Some Common ChallengesSome Common ChallengesSome Common ChallengesSome Common Challenges

Maintaining development focus Concurrent work on access, content,

market growth Structuring the incentives correctly

Efficient operations Responsibility for development content Including marginalized areas and

populations The question of subsidies

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Everyone’s Needs Are the SameEveryone’s Needs Are the SameEveryone’s Needs Are the SameEveryone’s Needs Are the Same

Help to get started Technical assistance Management

training Locally-appropriate

applications and content

A long term plan

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Technical AssistanceTechnical AssistanceTechnical AssistanceTechnical Assistance

Network design, equipment selection Technical management -- network

mgt, disaster recovery, virus protection, maintaining connectivity

Real-time technical support Staff and user training Offering ancillary services -- desktop

publishing, web site design and hosting, dial-up services

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Business Management NeedsBusiness Management NeedsBusiness Management NeedsBusiness Management Needs

Management training Financial planning -- pricing, billing,

equipment replacement cycles Collective action -- bulk purchasing,

rate negotiation, lobbying

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Marketing IssuesMarketing IssuesMarketing IssuesMarketing Issues

Demand aggregation and stimulation Who subsidizes the public good? Surviving while the client base grows

Investing in clients skill acquisition understanding of

new services Nature of demand

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

Longer Term IssuesLonger Term IssuesLonger Term IssuesLonger Term Issues

Professional support organization Local content E-commerce platform Involvement in creating hospitable

regulatory environment Sustaining pro-social focus Lessening the “digital divide”

Vid

eoco

nfe

ren

ce M

ater

ial

Business Management Models for Telecenters

For More Information, Contact:For More Information, Contact:For More Information, Contact:For More Information, Contact:

Dr. Dennis R. Foote, Vice President LearnLink Project Director Academy for Educational Development 1825 Connecticut Avenue, NW Washington, DC 20009 Ph: 202-884-8708, Fax: 202-884-8979 Email: dfoote@aed.org URL: http://www.aed.org/learnlink