Mark Beckford

Mobile Disruption


Emerging markets clearly require a more affordable solution. They also require something that is easy to use due to higher illiteracy rates and limited skills. Finally, in order for them to decide to use their hard-earned money on something, it has to be useful for them. Take a look at the PC. Even if someone gave PC’s away for free, you still wouldn’t see PC’s sales go through the roof. Sure, there’d be a big bump, but not to the penetration level you see with TV’s and other basic household appliances.

Even if a PC was made so easy to use (e.g. streamline and simplify the interface with large, logical icons) so someone that couldn’t read or had no computer skills could use the PC easily, they likely wouldn’t see that much value in it. The missing element is some unique value for consumers and micro-enterprises at the bottom of the pyramid. I don’t think this value exists in PC’s today.

Much has been written, by myself and others, on the tremendous growth of mobile phones in emerging markets. I’ve even considered whether it is the disruptive innovation for the PC. Mobile phones are relatively cheap (sub $100 vs. %7E$300-$400 for a PC), easy to use, and provides a unique value (voice/text communication for personal and business use). I’m not all the way there yet, as the small size will always limit what can realistically be done with a mobile phone. Mobile phones also did not take off in emerging markets first.They first appeared in mature markets years before they started making their way into developing countries. So my premise that a disruptive innovation for the PC would come from emerging markets doesn’t hold for the mobile phone.



A friend and colleague, Janine Firpo, a microfinance “guru” that is currently in Indonesia on assignment for the World Bank to accelerate the development of mobile banking solutions posted an entry to her blog entitled Why Mobile Banking Matters. She talks about why mobile banking is perfect for the large rural populations of developing countries. In a nutshell, due to the lack of local bank branches, it takes too much time and money to use a traditional bank. She also references an article on how mobile banking is beginning in Cambodia. I’m sure I could find more examples of these type of services in the developing world. But you will be hard pressed to find a comprehensive text-based mobile banking service in mature markets.

