The base of the world economic pyramid, generally called the base of the pyramid (BoP), consists of four billion people with average per day income of four dollars. While some authors suggest a systems approach to design and develop products and services (i.e. interventions) for BoP markets, a little work has been carried out in this area. Furthermore, a framework to represent interventions in the BoP (i.e. socio-technical systems) and the resulting changes of state is not available. The reviewed studies on technical systems include models that represent inputs and the resulting changes of state in such systems; however, these studies have not been used to represent interventions in socio-technical systems. By modifying a causality model of technical systems, this study develops a framework called the IASTS model to represent interventions in a socio-technical system. It then explains the IASTS model by analyzing two case studies drawn from the BoP. Keywords: Base of the pyramid (BoP), Socio-technical systems, Interventions, Changes of state, Representation
IntroductionThe base of the world economic pyramid, generally called the base of the pyramid (BoP), consists of four billion people with average per day income of four dollars. Most of these four billion people live in rural villages, urban slums, or shantytowns. Usually these people have little or no formal education. They are hard to reach via the conventional means of communication and distribution channels. The quality and quantity of products and services available to them is usually inferior (Prahalad & Hart, 2002). The authors state, "Low-income markets present a prodigious opportunity for the world's wealthiest companies -to seek their fortunes and bring prosperity to the aspiring poor". Businesses can make profits in BoP markets and help the poor in satisfying their unmet or under-served needs (Prahalad & Hart, 2002;Prahalad, 2004). Over the past several years, the design and development of products and services (i.e. interventions) for the BoP has been investigated by several authors from different disciplines (Prahalad, 2004;Whitney & Kelkar, 2004;Kandachar & Halme, 2008; UNDP, 2008;Jagtap & Kandachar, 2009a;Eaton et al., 2009;London et al., 2009;Viswanathan et al., 2009;Rivera-Santos & Rufín, 2009). Designing and developing products and services for BoP markets requires addressing diverse issues in these markets. Jagtap and Kandachar (2009b) synthesized the literature on these issues in the BoP. Their study found that the issues identified in the study conducted by the United Nations Development Programme (UNDP, 2008) are comprehensive and include those identified in other relevant studies. These issues are about: how businesses can gain information on BoP markets; under-developed regulatory frameworks; poor physical infrastructure; lack of knowledge and skills of BoP customers; and BoP customers' poor access to financial services. In order to address diverse issues in BoP markets through the design and development of interventions, an int...