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Frogtek: mobile business solutions for micro-entrepreneurs
Challenges:
In the richer parts of the world any business is supported by technology that gathers and processes data about sales, inventories and so forth. Unfortunately, for many small entrepreneurs in the developing world, such technology is a distant dream. This prevents them from having clarity on their business and limits their income.
However, there are almost 4 billion mobile phones in the world, compared to 1 billion PCs.Why don't we use this rising computing platform to assist microentrepreneurs, leapfrogging the cash register and even the PC?
Frogtek's idea is to use Google Android smartphones to build a simple business tool tailored to small retailers that can boost productivity, cut costs and save time. Using the barcodes present in most products, it will register sales and offer basic accounting and inventory management, and it'll be very easy to learn with video tutorials and help. For extra bang, add a social network, business advice, mobile banking, online orders... To get the user up to speed, the app will have a set of educational videos to provide basic business skills.
The app will be built using open source code so that it can spread very fast and have the biggest impact. The microfinance institutions will offer the phone and application on the back of one of their loans. And the mobile operator will see data traffic increase, so they'll support the technology on the ground. By properly incentivizing all stakeholders, the solution will reach its greatest potential.
We are planning a first pilot during early 2009 in Colombia, as we will first target Latin America markets with high mobile penetration. Given the relative simplicity of the retail business and the easy localization of the software, we expect to expand to other markets in Asia and Africa in 3-5 years.
Distribution Chains
Did you consider to win/include the distributors (wholesaler, brandsalers) as partner into your model.
Reason: if the small retailers (pulperÃas) in Colombia operate as they operate in Nicaragua -being visited periodically by distribution-trucks, then there might be a substantial efficiency gain for the distributors.
According a study I made some time ago, about 40% of the merchandise loaded onto the distribution-tracks returns to the central store, because when loading the truck there is no clear picture of what the small retailers actually need, since it's in best cased based on some previous statistics.
If either by push (small -> distributor) or pull (distributor -> small -> distributor) there would be true information available, that would reduce drastically distribution-chain costs.
Noteworthy: a good percentage of Walmart profits arrise exactly from just-in-time delivery/distribution
BTW: I would be interested to do a pilot with your system in Nicaragua
Innovative Idea
Dear Frogtek,
What an exciting idea. I was wondering how Net Squared acquire 'critical mass'?
Your project will continue to generate more users if it can acquire the initial users. It would be exciting to see the how this application can be used in other developing countries.
Good luck, Frogtek.
Sara
Involving customers in design
-- What will be done to involve users in the design of this product?
-- What data do you have from users themselves that says this is a product they want?
-- When and how will data be gathered to ensure that customers like the product?
-- In what languages will this product be offered?
<><><><><>
Jayne Cravens
Bonn, Germany
http://www.coyotecommunications.com/development/
Customer input: interviews, focus groups and a field trial
Thanks Jayne for the questions. We have indeed thought a lot about customer requirements, since we'll be selling these devices to them and will depend on their opinion to thrive. We'd better be a customer-centric company, otherwise our revenues will not support our operations...
To answer your first question, we have done a round of personal interviews and focus groups with small retailers in Bogotá. So our first prototype will be shaped by customer input. We also know that for some customers the lack of proper data is a limiting factor in their growth.
Once we complete a first full prototype, we'll start a field trial with 10-15 customers. We will specifically focus on their input regarding what works well and what is missing. And we'll definitely gather concrete data on customer opinion. We'll spend around two months trialing the software and we'll have people on the ground helping and observing the customers, so we expect to get a very rich data set.
Finally, we'll offer the product in Spanish first, as we'll be concentrating in Latin America. However, we will make it open source one it's been polished, so anyone can translate it to other languages.
Reply to Involving Customers in Design
Thanks Jayne for the questions. We have indeed thought a lot about customer requirements, since we'll be selling these devices to them and will depend on their opinion to thrive. We'd better be a customer-centric company, otherwise our revenues will not support our operations...
To answer your first question, we have done a round of personal interviews and focus groups with small retailers in Bogotá. So our first prototype will be shaped by customer input. We also know that for some customers the lack of proper data is a limiting factor in their growth.
Once we complete a first full prototype, we'll start a field trial with 10-15 customers. We will specifically focus on their input regarding what works well and what is missing. And we'll definitely gather concrete data on customer opinion. We'll spend around two months trialing the software and we'll have people on the ground helping and observing the customers, so we expect to get a very rich data set.
Finally, we'll offer the product in Spanish first, as we'll be concentrating in Latin America. However, we will make it open source one it's been polished, so anyone can translate it to other languages.
Customer input
Thanks Jayne for the questions. We have indeed thought a lot about customer requirements, since we'll be selling these devices to them and will depend on their opinion to thrive. We'd better be a customer-centric company, otherwise our revenues will not support our operations...
To answer your first question, we have done a round of personal interviews and focus groups with small retailers in Bogotá. So our first prototype will be shaped by customer input. We also know that for some customers the lack of proper data is a limiting factor in their growth.
Once we complete a first full prototype, we'll start a field trial with 10-15 customers. We will specifically focus on their input regarding what works well and what is missing. And we'll definitely gather concrete data on customer opinion. We'll spend around two months trialing the software and we'll have people on the ground helping and observing the customers, so we expect to get a very rich data set.
Finally, we'll offer the product in Spanish first, as we'll be concentrating in Latin America. However, we will make it open source one it's been polished, so anyone can translate it to other languages.