Value capture and value creation: The role of information technology in business models for frugal innovations in Africa

Howell, Rachel; Beers, Cees van; Doorn, Neelke

doi:10.1016/j.techfore.2017.09.030

Cited by 130 publications

(117 citation statements)

References 59 publications

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“…For a successful set up of new production locations in developing countries, it is crucial to offer appropriate products regarding costs, function and quality [80][81][82][83][84][85] Hereby, a reduction of complexity should be attained e.g., through reducing the number of components [86], standardization [8,16,29,64,72,87] and reduction of resources (such as financial invest, material, production time) [38,49,51]. As unappropriated products are seen as inefficient [79], local population should be involved in product development [38,79] including local product testing [79,80].…”

Section: Product Challengesmentioning

confidence: 99%

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Production Challenges in Least Developed Countries

2020

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Local production sites in least developed countries offer sustainability for both multinational corporations and local society. However, corporations often hesitate because of uncertain environmental influences on production sites in these countries. To minimize planning uncertainties, we aim to identify and categorize the challenges of local production in least developed countries. Therefore, we conduct a research on local production challenges described in current literature. Our results indicate that the influences can be clustered and occur independent of the country. To show practical relevance and actuality of the identified production challenges, we conducted two case studies. Additionally, these studies give examples for organizational, product-specific and technological solutions to overcome the prevailing challenges. In summary, we support the removal of barriers that keep corporates from setting up local production sites in least developed countries.

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Section: Product Challengesmentioning

confidence: 99%

“…Due to the 164 uncertainty in the markets and the small quantities at the beginning, companies have to wait longer 165 until the investment is profitable. In addition, companies must expect profits that are appropriate for 166 markets in developing countries [31,51].…”

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confidence: 99%

Production Challenges in Least Developed Countries

2020

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“…The idea is that the BoP markets are untapped markets, which make it possible to skip-over certain established technology options in favor of implementing more modern technologies [27]. Lately, the digitization of BoP markets has played a role in the development of frugal (reverse) innovations [39].…”

Section: Digitization In Bop Marketsmentioning

confidence: 99%

Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

Saul

Gebauer

2018

Sustainability

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People in Base of the Pyramid markets still face difficulties when it comes to sanitation. Container-based Sanitation (CBS) services represent a promising advanced sanitation service. Despite the observed outcomes of CBS services, organizations face obstacles when providing these services. To overcome these obstacles, digital transformations of these services are being carried out. We rely on multiple case studies to understand these digital transformations. Our findings highlight (1) the challenges these case organizations faced before engaging in the digital transformation, (2) their individual digital transformation pathways, and (3) a general framework for digital transformations in BoP markets. Keywords:Container-based Sanitation; advanced services; Internet of Things; Base of the Pyramid; WASH; sanitation MotivationThe 4 billion people in the world who subsist on a few dollars a day are often referred to as the Base of the Pyramid (BoP) [1]. Much of the BoP population lacks access to necessary services [2,3] such as water, sanitation, and energy. Considering our empirical context of sanitation, 2.4 billion people do not have access to a toilet that is connected to a sewage system or vaults that are regularly emptied and serviced [4], 892 million of which practice open defecation [5]. In addition, the excreta of 4.5 billion people is not safely treated or disposed of properly [5]. To better serve the BoP population, organizations need to move beyond offering basic sanitation products to the BoP population.A typical illustration of a basic sanitation product is the building of pit latrines, without concern for the wider excreta management system. While this approach can be designed to be very affordable, scalable, and even suitable for rural areas, it is not suitable for densely populated, informal, urban areas. In such conditions, basic sanitation offerings do not guarantee how and where excreta enters a sanitation system; how and for how long it is contained on site; how it is transported to a treatment facility; how it is treated; and how it is finally disposed of or re-utilized [6]. A system-perspective is critical for achieving the Sustainable Development Goals (SDGs) 6.2 "... access to adequate and equitable sanitation and hygiene for all and end open defecation" and 6.3 "... improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally" [7].Therefore, organizations should create advanced sanitation services. The idea of advanced services originates from the servitization discussion describing how product companies are increasingly transitioning from offering products to basic services, and from basic services to advanced services [8]. Advanced services are generally distinguished by their focus on outcomes and the tight links to the necessary capabilities for achieving these outcomes [8].Container-based Sanitation (CBS) ...

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“…4,5 Similarly, companies or governments with the goal of allocating investments in product and process innovations, all of which seem attractive, may prefer to invest in those that are more likely to make faster progress. [9][10][11] There are many technologies that may emerge and eventually disappear over the years. [6][7][8] There is a consensus in the scientific community and business environment of the strategic importance of technology in generating value for the companies and networks in which they operate.…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, the impact of changes in technology and markets needs to be assessed in terms of potential threats and opportunities. [9][10][11] There are many technologies that may emerge and eventually disappear over the years. 12 This fact makes the monitoring of technological trends as well as the anticipation of the direction of technological change paramount.…”

Section: Introductionmentioning

confidence: 99%

Prospecting technologies for photovoltaic solar energy: Overview of its technical‐commercial viability

et al. 2019

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There are many technologies that may emerge and eventually disappear over the years. This fact makes the monitoring of technological trends as well as the anticipation of the direction of technological change paramount. This article aims to carry out the prospection of technologies, focusing on its technicalcommercial viability, for solar photovoltaic energy. The research method had a qualititative-quantitative approach with application of the Delphi technique. In the conduction of the Delphi technique, seven steps were followed, ranging from the selection of the specialists to the considerations of their opinions regarding the future of nine photovoltaic technologies. The results of the research indicate that in 2020, the cells monocrystalline, multicrystalline, and amorphous silicon; cadmium telluride; indium/copper selenide, indium, and gallium diselenide; and multicompound III-V cells will have technical and commercial viability and that dye-sensitized silicon nanowire and carbon nanostructure-based cells will not be viable. For the year 2025, monocrystalline and multicrystalline silicon cells and those of multicompounds III-V will still be technically and commercially viable. Silicon nanowire; amorphous silicon; cadmium telluride; indium/copper, selenium, and gallium diselenide dyesensitized cells; and organic photovoltaic cells, including those based on carbon nanostructure, may be viable. This study is important, because the technological prospecting of the photovoltaic cells determines the possible trajectories of these cells, in a way that helps the companies of the sector to anticipate the strategic scenarios, thus facilitating the decision making process.

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Value capture and value creation: The role of information technology in business models for frugal innovations in Africa

Cited by 130 publications

References 59 publications

Production Challenges in Least Developed Countries

Production Challenges in Least Developed Countries

Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

Prospecting technologies for photovoltaic solar energy: Overview of its technical‐commercial viability

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