Telecentres in Brasil: Gaps, Trends and Sustainability
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Transcript of Telecentres in Brasil: Gaps, Trends and Sustainability
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Welcome toTIS TalksWe believe that today’s ICT4D (information and community technology for development) environment presents us with trends and opportunities with great potential to generate game changing innovations to telecentres and their growing number of users.Join us and learn how!
Welcome toTIS TalksWe believe that today’s ICT4D (information and community technology for development) environment presents us with trends and opportunities with great potential to generate game changing innovations to telecentres and their growing number of users.Join us and learn how!
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Presentación y ModeraciónJimena BetancourtTELECENTE SUSTAINABILITY WEBINAR COORDINATOR
Jimena Betancourt is an international consultant with more than 10 years of experience in social innovation, strategy and management for sustainable development enterprises and social businesses in ICT4D. She has been involved with the telecentre movement since 2009. Jimena has an Master’s in Business Administration from Simmons College and a degree in Finance and International Relations from Universidad Externado de Colombia.
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Valter CegalDirector of OperationsATN
Valter Cegal is an Electronic Engineering graduate from Escola de Engineering Maua in Sao Paulo. Aside from his role as Operations Director of ATN, he is also a Business Advisor of NESsT Organization in Brazil and a member of the Partner Advisory Group of TechSoup Global.
Valter was formerly a Senior Executive of various multinational companies in Brazil, namely Ford, Philips Electronics, Arrow Electronics, Flextronics and AMD - Advanced Micro Devices.
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Telecenters in Brazil:gaps, trends and
sustainability
Valter Cegal
July 30th, 2012
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Scenario in Brazil...
Government currently focusing on digital inclusion centers in public schools (178,000 in Brazil), no longer in gov’t sponsored telecenters. Ongoing programs with telecenters will be kept, but will no longer incentivated.
Two important issues: connectivity is available only for 50% of all municipalities in Brazil, and the use of schools out of the daily classes period.
Challenge: how to offer broadband access to all the 5550 municipalities in Brazil? PRO-UNI is in course in order to provide access to all schools/municipalities.
Youth has been the driver of the telecenters and cybercafes movement in BRazil, mainly of the pheriferal area of major cities. Penetration in rural and isolated areas is still too small. Public telecenters is a phenonenon only in the surrondings of large cities
The role of telecenters as incubator centers is a challenge. How to use them to foster new and innovative businesses and opportunities? How to incentivate that idea?
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Scenario in Brazil...
Challenge: How to engage the private sector on the telecenter movement, establishing sustainable businesses in telecenters?
Social telecenters: community seizes knowledge of IT benefits (community empowerment)
Telecenters in Brazil: many isolated initiatives, no sharing of experiences and expertises.
Survey of WEF/Itafe in 2005 in Brazil: why to access Internet? Employment, health and culture
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Telecenters eco-system/key drivers
Infrastructure
Human resources
Management
Government regulations
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TC manager skills
Telecenter Key issues: what matters?
Sustainability
Costs controlCapacity building
VolunteersInfrastructure
Conectivity
Location
Educational content
Software
Computers
Users needs
ProgramsContents
Revenues
Users
Technology
Maintainance
Local Community
Community empowerment
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Trend: Telecenters convergence
Telecenteri-Cafe or
Lan House
• What should change?• How to get there?
Mix of both
• Strong social bias
• Close to a community
• Not a multipurpose location
• Require management skills
• Volunteers
• Strong commercial bias
• Updated in technology
• Management skills
• Skilled people
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Telecenter2007
Telecenter2012
How to fill the gaps?
• No services portfolio
• No management skills
• No Financial Resources
• Services portfolio• Management skills• Sustainability
$
ATN engagement with commercial partners to offer products to the telecenter channel...
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Sustainability and the ATN history
ATN was a spin-off of the MDIC-Ministry of Development Industry and Commerce in Brazil that was create in 2006 in order to develop strategies that could bring sustainablity for the network of Telecenters created by MDIC.
MDIC created the network donating computers that were obtained from government companies.
The challenge was to create a business model that would be able to bring sustainability to ATN itself plus to the ATN network.
Question: how to do that?
Idea: use the telecenter network as a channel... (for multiple purposes...)
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ATN
TelecentersTransactions:a. products and servicesb. Sales promotion
End user
Business partners
Relationship : a. Direct contactsb. Identification of needs (surveys)c. Introduction of new partners
Partnership:a. Business model definitionsb. Selection of suitable products
ATN Business model
Transactions:a. Direct saleb. Payment processing
(*)Telecenter managers have a contract with ATN that allows them to get commissions...
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Users:• Daily: 28.700• Monthly: 861.000• Annual: 10.335.000 Source: CDT/UNB
ATN Telecenters network...
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Telecenters: best use of IT tools...
Major activities in Telecenters:
Internet access
Digital literacy
Training on IT tools
Improvement in languages
Post graduate (EAD)
Entrepreneurial training
Development of community actions
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ATN Network...
2.070
TelecentersDigital Inclusion Centers
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Profile of Telecenter users
52%Small entrepreneurs
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Profile of Telecenter users
70%Seaching for capacity building
trainings
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Profile of Telecenter managers of ATN network
High School
High School not completed
Elementary
Elementary not completed
Graduation
Graduation not completed
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Challenges of ATN at the begining...
•Find the right partners in the Corporate sector
•Develop the necessary skills to play in the Educational sector
•Entrepreneurial behaviour
•Use the network of its management team to approach the potencial partners
• Clearly understand the telecenters movement in Brazil, trends and gaps, and position ATN in a way that it can be sustainable in that environment
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The role of an entrepreneural management…
•The importance of personal network to help the business
•Open the doors at the public sector for partnerships with ATN
•Personal relationship of ATN management with the Corporate Sector
•Competence of the ATN management to run the organization in a profitable way
•Identification of opportunities by developing a detailed strategic plan for mid/long term.
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Analysis of products that could be offered via Telecenters... Most of the telecenters do not have a Tax ID, and therefore can not
sell products. Physical products could not be sold on telecenters Telecenter’s managers have no skill to sell physical products Telecenter have no places to keep a stock of products Education is the main focus of telecenter users
Conclusion: to use telecenters as commissioned sales agents for products that do not need a warehouse and the transaction will not require an invoice. Courses/training fits very well on the strategy. Distant Learning was the best approach.
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Growth of 45,000 % in the number of students in the period 2000-2011.
2000: 13 high school courses.
2011: 1.800 courses
2007: 800,000 students.
2011: 3 million
Source: MEC
Distant Learning in Brazil – analysis of the market size
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What courses/tranings TC users need?
Surveys have shown the what TC managers and end users wants.
Focus of end user is courses to improves its knowledge and get either a job, or a better one.
Focus of TC managers mainly on improving sales skills and manage small buiness operation...
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ATN website: paid trainings
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ATN website: free and paid courses
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ATN website: free trainings
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Other successful initiatives of ATNPartnership with TechSoup Global: Program of Donation of software licences in Brazil:
Partners NGOs: 1500+ Licenses donated: 33,000+ Market value of donations: US$13 million
Capacity building training in partnership with Microsoft: Participants: 200,000+ Course: IT basic (30 hours)
IBM Collaborative Networks Program: Use of Smart Cloud by NGOs Lotus Connections Training: Best practises on management tools
Ticket Restaurante: Training of restaurant employees on best practises for handling food. Restaurants in Brazil: 700,000
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Past and Future
2006-2011
2011-2014
Planning for mid and long term actions
Become a content provider
No use of management tools Intensive use of management tools
Lack of contacts with Public sector Partnership with Public sector
Immediacy actions
Partnership with content providers
Passive marketing Proactive marketing
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1.Developed a business model for sustainability.
2. Established partnerships with content providers.
3. Redesigned website.
4. Updated the base of telecentres and users.
5. Enlarge based TechSoup program for NGOs.
6. Developed Project Management skills.
7. Developed skills for public announcements.
8. Uses social networking tools and Digital Media.
9. Launched surveys to understand Telecenter and end user
needs.
What ATN did so far?
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ATN partners
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Lessons that were learned by ATN…
•Planning is key!
•Diversify the areas in which it will play
•Tight control of expenses
•Use the best of the personal networking of the management team
•“Sell” the organization in a proper way
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The strategy so far…
The pillars of sustainability:
– Focus on the direction to go...
– Planning the actions to get there...
– Understand the weakness and strenghts of the organization...
– Understand the internal process..
– Take advantage of the personal network...
– Skilled people on programme management
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What are ATN's recommendations for other networks aiming to sustainability?
•Understanding of the sector it wants to play...
•Understanding its internal process...
•Development of mid and long term strategies
•Use IT tools to be efficient
•Do a lot of networking...
•Establish partnership with other NGO’s
•Replicate the best practises of other organizations
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Challenges and new sustainability frontiers for ATN?
• Consolidating the existing partnerships and establish new ones in the public sector
• Replicating successful initiatives...
• Continue to use the network as a channel...
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