ASSESSMENT OF COMMUNITYINVOLVEMENT INITIATIVES

IN LATIN AMERICAA plan created for NOKIA

Jorge FernandezMarch 29, 2008

Cover

DescriptionCompile a 3-year plan (2008-2010) for Community Involvement in Latin America.

Budget8 million Euros to be used primarily for social programming, rather than marketing or media relations.

Target & ReachYouth Development + Use of Mobile Technology = Help Society.

LengthFund multi-year social projects, mainly because it takes time to yield results in this area.

OutcomesEstablish clear metrics and engage partners.

VolunteeringEncourage NOKIA employees to volunteer in teams. They are entitled to 2 days each year.

Legacy ProjectsTake into account these projects, which will consume 50% of the budget in 2008, 25% in 2009, and 0% in 2010. Continuing with legacy projects is optional.

The Task

1. Analyze legacy projects in Latin America. For each project identify its location, model, period, key partner, and reach.

2. Identify ways to converge CI + MT without having to reinvent the wheel. This is better accomplished by first researching and documenting what has been successfully accomplished in other parts of the world.

3. Identify opportunities in Latin America to adapt and replicate successful CI + MT stories from other nations and effective ways to factor in YD.

4. Identify key partners (financial, modeling, technology, resources, etc.)

5. Identify ways to continue supporting legacy projects via self-sustainability and engaging new partners and sponsors.

6. Explore scenarios for optimal budget allocation. Ideally, creating self-sustaining projects which can also contribute to legacy projects and support new YD projects.

7. Design a feasibility criteria for selection of projects with potential for higher impact on overall society.

8. Create a wide variety of simple roles to encourage volunteering.

CI - Community InvolvementYD - Youth DevelopmentMT - Mobile Technology

HS - Help Society

Methodology

› Small installed base of Internet-ready PCs in Latin America. Thus, role and relative importance of mobile platforms is much greater.

› With its still emerging data, multimedia, gaming and video capabilities, the mobile phone appears destined to become the primary means through which low income users in Latin America can access all forms of informal, peer-to-peer, networking, published, business and official content.

› Coverage of wireless access is mainly available in urban areas and rapidly expanding in rural areas, however TCO remains the biggest challenge for low income segments.

› Effective ICT programs need at least two media platforms:Internet-connected-PCsMobile phones.

Technology BackgroundRelative to Disadvantaged or Low Income Population

“In developing nations the phone is basically a surrogate for the computer and the credit card. This one ubiquitous piece of technology can be repurposed for all sorts of interesting activities.”

Nathan Eagle, EPROM, Nokia Forum

Most mobile applications have beendesigned to profit in developed economies

and for wealthier market segments

Legacy Projects

ConéctateVenezuela

Calle a Calle

Say NO to drugs

ConéctateColombia

ConéctateChile

Mudando a Historia

PostaJóven

Program

Disadvantaged youth development and improvement of their communities, by organizing art and communications activities. 1800+ participants.

2005 - 2008SESNOKIA

Argentina

ICT, life and entrepreneurial skills training for youth. Job placement services for 500 local youth, ages 18 – 29

2005 – 2008IADBNOKIA

Venezuela

Disadvantaged youth between the ages of 16 and 20 who then act as volunteers for children from the same socioeconomic group

2005 - 2008GTZNOKIA

Peru

ICT, life and entrepreneurial skills training for youth. Job placement services for 400 local youth

2005 - 2008IADBNOKIA

Colombia

Vocational and life skills training, community service and job placement services for local youth.

2005 – 2008IADBNOKIA

Chile

Teach reading to disadvantaged children. Organized a "Youth Commission" to help continuation of project activities by establishing "training the trainer" activities, as well as, seeking new sources for project funding.

2005 – 2008NOKIABrazil

Scope and ReachPartnerPeriodFundingCountry

€ 4M 2008 BudgetApparently these projects will expire in 2008. Need to know budget breakdown and real number of beneficiaries.

Euros 26M

330,000Beneficiaries

= Eur 79 per beneficiary

Budget Allocation - € 8M

€ TBD› Scale, adapt and

replicate projects to:Support smaller starting projects.Support legacy projects.

› Monitor P&L Management

› Define Exit Criteria

€ 2M› Define Exit Criteria or

make assessment to continue funding project.

› Execute Succession Planning or suitable parts.

2009 20102008TYPE

€ TBD› Apply Exit Criteria› Develop new projects.

€ TBD› Location selection criteria.› Prepare business cases to

select top 3 projects.› Strive for CI’s long-term

support.› Define financial and success

metrics for self-sustainability.› Engage new partners and

sponsors.

NewProjects

€ 2MBudget allocation

needs to be correlated to the

scope, reach and lifecycle of each

project..

› Apply any unused balance from allocated budget.

› Implement means to make project self sustainable.

› Encourage the community to take on some modest tangible projects that better meet local needs.

€ 4M› Assess real impact of allocated

budget per beneficiary.› Create Succession Plan.› Take advantage of low US

Dollar value against Euro for any purchase of assets or services in the U.S.

Legacy Projects

€ 6MNOKIA funding may still be available into

2009.

Project = CountryProgram = Enterprise

High

2008

Bud

get

LegacyProjects

NewProjects

Budget and Projects Lifecycle

2009 2010

End of 3 -yearproject life

Full SelfSustainableLow

Use difference tostart new projects

Break EvenPoint

Bell shape forsake of illustration

BOP mayhappen later

Financial Management

› Define ratios by project and consolidate then by country and region.

› Ensure bookkeeping is done per corporate guidelines.

› Strive for effective P&L management.

› Track financial costs for each project.

› Develop a program budget that allocates indirect costs to each program.

› As much as possible strive to minimize overhead or administrative costs in order to make more money available for programs

› Identify and quantify possible liabilities

› On a monthly basis compare planned revenue and expenses to actual revenue and expenses. Decide where to cut down on expenses and build up on revenue.

› Produce quarterly financial statements for each project: cash flow statement, statement of activities and a statement of financial position.

In essence alwaysmanage actual reach and

maximize distribution of funds

Reflects how many months the organization could operate if no additional funds were received. (> 18 months)

Financial Ratios

Defensive Interval (DI) = Cash (Budget) + Sponsorships + ReceivablesAverage Monthly Expenses

Liquid Funds Indicator (LFI) = Total Net Assets – Restricted Net Assets – Fixed AssetsAverage Monthly Expenses

Similar to the defensive interval in its use but is more conservative in removing assets with restrictions on them from the calculation. It also determines the number of months of expenses that can be covered by existing assets. (Min. 12 months)

Savings Indicator (SI) = Revenue – Expense Total Expense

Measures the increase or decrease in the ability of an organization to add to its net assets. Values greater than one indicate an increase in savings. The savings indicator is a simple way to determine if an organization is adding to or using up its net asset base.

Debt Ratio (DR) = Average Total DebtAverage Total Assets

Measures the proportion of assets provided by debt. High values indicate future liquidity problems or reduced capacity for future borrowing. (< 1)

Revenue Ratio (RR) = Revenue SourceTotal Revenue

Seven revenue sources can be analyzed in order to establish what proportion each of these revenue streams contributes to the organization’s total revenues. These sources are: public contributions, government grants, program service revenues, dividends and interest, net sales,membership dues, special events.

Program Service Expense Ratio = Program Service ExpenseTotal Expense

Measures the relationship of funds spent for program purposes to all expenses.

Criteria for QuickProject Assessment

HIGHMEDLOWNOYES

Can the project become self sustainable in the future?

When will it deplete allocated budget?

Will it generate the expected outcomes?

IS IT WORTH DOING?

What demographics will it reach?

What are the determinant attributes of each available solution, including ours?

Are there other suitable solutions or projects?

CAN THE SOLUTION BE COMPETITIVE?

Is the solution self sustainable?

Does it fit corporate core criteria and guidelines?

CAN OUR EFFORT BE ASSERTIVE?

Is it measurable?

What is the estimated cost?

Can it be delivered?

IS THE SOLUTION FEASIBLE?

What will the project life cycle be?

What is the size and scope of the addressable target?

IS THE NEED REAL?

C E R T A I N T Y

Complement with businesscase at project and

program levels

› Close the digital divide gap.

› Promote entrepreneurship for increased economic sustainability.

› New employment generation with fulfilling careers.

› Include measurable impacts on development of life skills, civic education, reduced social exclusion, poverty reduction, etc.

› Youths shall acquire basic, intermediate and advanced ICT skills critical to employment, education and communication.

› Increased self-esteem, confidence, teamwork and conflict management.

› Higher ability of participants to sustain themselves via employment or starting a new businesses.

› Return the favor by actively volunteering in new projects or by generating new job opportunities.

› High rate of volunteering among Nokia employees.

Expected Outcomes

Definecurriculums

HARD benefitsSOFT benefits

High

Low HighVariety of Projects and Roles

Volu

ntee

ring

LegacyProjects

Shared PhoneBasic MT+YD Projects

Advanced MT+YD ProjectsmAppsmUniversity

Volunteering

› Organize internal events to raise awareness of projects portfolio and variety of roles

› Communicate expected outcomes

› Leverage Nokia’s Helping Hands

› Leverage “Connecting People” initiative

› Leverage ShareIdeas.org

Launch basicprograms in 2008

FRAMEWORK FOR EFFECTIVE PROGRAMMING

Making Youth Programs Work

WORKING WITH YOUTH1. Focus on positive youth development.2. Offer developmental appropriate activities.3. Strive for maximum youth participation.

CONTEXT,FAMIILY, COMMUNITY, AND CULTURE4. Involve parents, family and other caring adults.5. Involve the community in the work of the program.6. Strive to be culturally relevant.

SOUND ORGANIZATIONAL PRACTICES7. Cultivate and retain competent and committed staff.8. Build strong managerial and administrative capacity.9. Take action to maintain sustainability.10. Develop systems for monitoring and evaluation.

Source: International Youth Foundation, Summer 1999

“We recognize that simply supporting young change makers is not enough. We need to dialogue and engage with them in seeking solutions to urgent social needs.”

Martin Sandelin, VICE PRESIDENT, CORPORATE RESPONSIBILITY AND COMMUNITY INVOLVEMENT, NOKIA

Engage in dialogue at thevery beginning to identify

needs, set a structureand attainable solutions.

Student Objetives› Develop a business behavior and mindset that leads

into improved personal financial independence

› Acquire basic competitive skills to succeed in business.

› Feel confortable and confident when embracing complex business challenges

› Improve business and financial estrategies.

Foster Entrepreneurship

DI-Empresa, is a new learning program developed in Peru that teaches youth how an enterprise is created, how to generate business ideas, and foster an entrepreneurial mindset.

Teach participants to runprofitable enterprises and

commit to supportingother programs.

Mobile Technology Applications

› Mobile Payphone

› Shared Cell Phone

› Village Cell Payphone

› Bridge-It + Text2Teach

› Mobile Banking, transactions, micro-loans

› Micro-payments, SMS Money Transfer

› Mobile Learning – Mobile-ED

› Mobile Map Service

› SMS Gateway Development

› SMS based search engine

› Mobile Stock Trading

› Mobile Blogging

› mHealth

Suitable for Low Income Segment,deployed in Asia, Africa and India

Working with Universities

Engage students in each target country to design business models and develop mobile applications aimed to resolve problems that affect low income population.

There’s no better approach to resolve a problem that designing a solution by the very people that are experiencing said predicament.

To Engage the Local Communities

3-Year Plan

› Execute Expansion PlansHorizontal (geographic)Vertical DemographicsAgeDisadvantaged youth womenIndustry: video production, web site development, retail, services, etc.

› For selected projects develop community structures and arrange for space, training, resources, processes, and professional expertise (legal, financial)

› Secure participation of key partners.› Identify and engage Youth Forums

that represent addressable targets. Introduce project plans.

› Launch University Contest and secure (free) proper media coverage with participation of partners and government officials Launch university contest: business models, m-commerce, m-banking, m-transportation, m-communications, m-socialdev, m-collaboration, m-video, m-payments, m-ordering, m-content

› Volunteering: Continuously promote project portfolio and exciting variety of roles.

› Learn Nokia’s CI guidelines.› Take over management of all legacy

projects.Rapidly get acquainted with primes, contacts, allocations of resources, priorities, deliverables and deadlines.Assess outcomes vs. budget

› Succession PlanningTry to match legacy projects with MTExplore self sustainabilitySearch new partners and sponsorsHandle the actual timing of withdrawal with careIf possible dovetail into new funding programs

› Development Plan of New ProjectsDefine country selection criteria: youth unemployment rate, disadvantaged youth rate, poverty rate, rate of unemployed young women, etc. Gather primary market dataPrepare business cases and socialize projects with selected partners

201020092008

Partners in Education

› Local Universities and Technical Institutes› Local Governments› Technology Vendors› Wireless Service Providers

EPROM

EPROM 2008 UpdateEPROM’s first academic year was extremely eventful. They have successfully developed a mobile phone programming curriculum and taught hundreds of Kenyan, Ethiopian, Ugandan, and Rwandan computer science students Python, Java, and SMS-based mobile application development.

These classes have led to dozens of projects concerning the development of mobile phone applications specifically for the African market. Several of these projects have gathered international media attention, while others are being formed into start-up ventures based in Nairobi, Addis Ababa, and beyond.

Principal InvestigatorNathan Eagle, PhD- Research Scientist, Program for Developmental Entrepreneurship,MIT Design Laboratory- Fulbright Lecturer, University of Nairobi- Adjunct Associate Professor, CTIT, Ethiopia

MITProfessor Alex (Sandy) Pentland- Director & Founder of the Program for Developmental Entrepreneurship, MIT Design LaboratoryProfessor William J. Mitchell- Director & Founder of the MIT Design Laboratory

http://eprom.mit.edu/entrepreneurship.html

EPROM, part of the Program for Developmental Entrepreneurship within the MIT Design Laboratory, aims to foster mobile phone-related research and entrepreneurship.

Key activities include: ›development of new applications for mobile phone users worldwide›academic research using mobile phones ›creation of a widely applicable mobile phone programming curriculum

Today’s mobile phones are designed to meet Western needs. Subscribers in developing countries, however, now represent the majority of mobile phone users worldwide. The adoption of new technologies and services within this vast, emerging market will drive innovation and help shape the future of the mobile phone.

Off the DesktopEPROM’s educational component involves mobile programming courses at the University of Nairobi. Eagle and his colleagues believe that the current curriculum, which focuses almost exclusively on programming for PCs, is inappropriate for Africa. PCs are still rare in countries such as Kenya. By contrast, mobile phones are virtually ubiquitous. As a result, according to the EPROM Web site, “African computer science graduates are not qualified to address the computing needs of African people. At such a critical point in the evolution of computing technology, there is a need to equip these computer science students with the skills to develop mobile phone applications specifically for African users.”

To that end, Eagle and his colleagues are preparing a series of mobile technology courses. The proposed curriculum has been approved by a college principal and the university’s deputy vice chancellor of academics.

For students with little programming experience, EPROM will offer a class titled “Python for Rapid Mobile Application Development,” which is based on a one-week pilot course that was offered to university faculty and students in July 2006. The new course will provide an overview of how to develop mobile applications with minimal amounts of coding.

The EPROM educators are also preparing a joint MIT–University of Nairobi project-based course titled“Mobile Phone Programming for Entrepreneurs.” This class will team MIT and University of Nairobistudents, who will develop, market, and launch their own mobile applications in Nairobi and Boston. Ingeneral, those applications will be short message service (SMS) server-based offerings, but client-sideapplications will also be encouraged. Nokia has pledged seed funding to turn the best class projects intocommercial ventures.

For those students who have already studied object-oriented programming (preferably with Java™technology), EPROM is offering “Introduction to Mobile Phone Application Development in Java.” Thiscourse will use existing MIT and Nokia course material.

EPROM

SMS Bootcamp - Text Message Service Prototyping

The most popular mobile phone applications are server-side SMS (text messaging) services. During the 2006-2007 academic year, we will be offering a "SMS Boot Camp" at the University of Nairobi, a project-based course enabling teams of students to launch and market their own SMS services to the millions of mobile phone users in Kenya. A small amount of seed funding will be available to the best teams interested in turning their project into a commercial venture.

Airtime BankingMobile phone users in rural areas are only able to buy airtime when they go to the market in town centers - an event that occurs rarely due to the long distances required to travel. In Kenya there are millions of these rural subscribers who currently have to guess how much airtime they will use before their next visit to the local market. However, as many Kenyans can attest, budgeted airtime often disappears much faster than anticipated.

Airtime Banking is an SMS application developed by Dickson Ukanga in s60 python for Kenyan airtime dealers in rural town centers to help solve this problem. Using Kenya's standard airtime transfer techniques (Sambaza and Me2U) the application transforms a s60 phone into an automated SMS gateway. When airtime is purchased, the airtime dealer updates the client's account on the system with the purchased value and the period that the client wants the amount to last. The Airtime Banking application sends a trickle of airtime to the client's phone over the course of the selected time period, helping the client use the airtime more efficiently. While this may cut some calls short, the system guarantees the client will have access to airtime until his next trip to the market.

EPROM

Mobile Mapping Kenya

Jessica Colaco had been exploring the possibility of studying mobile GIS systems for her thesis work, but was getting increasingly frustrated that maps of developing countries such as hers were not commonly found in existing mobile map databases. After finding no suitable service that would meet her needs, Jessica developed her own system that allows a mobile phone user to view detailed street maps of Nairobi as well as access to her user generated point-of-interest (POI) database. Using a GPRS connection to our Apache web server, a user can query local Kenyan destinations, streets, businesses, or civil services such as police stations and hospitals. The locations and contact information of the results that meet the search criteria appear.

MoSoko - The Mobile Community Market Billy Odero, a newly graduated Computer Science student from the University of Nairobi, was moving out of the dorms and wanted to sell some of his things to the other students at the university. He was also interested in finding an apartment to share with other newly graduated students somewhere downtown. Tired of sifting through irrelevant ads on bulletin boards, Billy developed a SMS bulletin board system to help connect buyers and sellers in Nairobi. Sellers text into the MoSoko SMS gateway with information regarding the type of item (bicycle, TV, couch, ... ), their location (Nairobi, UoN Chiromo Campus), and the asking price for the item. This information is stored in a database and can be easily queried via SMS by potential buyers.

EPROM

Context-Aware Mobile Data Entry for Billing Systems

During a summer internship John Muli Senga became familiar with data collection in the field, and the importance of data integrity and accuracy. However, ensuring the data's integrity becomes a difficult task without automated integrity checks - an impossibility with the standard paper-based field data collection. John set out to design a mobile phone application that enables data entry with realtime integrity checks, shifting the bulk of integrity control from the backend entry staff/system to the data collector. Collected data from his application can be uploaded remotely to a server, which does a much lighter processing and error control. The Data Logger also enables real-time data synchronization with a database server through GPRS. But to allow batch transfers and cut down the connection latency, a resident database is available which can be synchronized with the remote database at longer intervals. To ensure the data collectors are in the correct location, John also developed the functionality to log GSM and also GPS location information at the occurrence of an event.

Mobile Phone Programming for EntrepreneursWe will be hosting a project-based course that will allow students to learn enough of the basics of mobile phone programming to design and launch their own mobile phone application. While a major focus of the course will be on the technical skills required to build these application, we will also have a particular emphasis on opportunity analysis and product marketing. Success in this class depends on recognizing an existing market demand and meeting that demand with the design and launch of an original mobile phone-related service. While there will be an emphasis on SMS server-side application development, we will also give students to the skills to build applications on the phone itself.

EPROM

New global collaboration gives children a voice

Plan has teamed up with one of the world leaders in mobile communications, Nokia, to help give a voice to thousands of children in Africa.

The new collaboration will use information and communications technologies (ICT) - such as radio, mobile phones and the internet - to raise children’s awareness of their rights and opportunities. Nokia has provided an initial donation of one million Euros for 2006.

The first stage of this new joint effort will see Nokia focus on supporting Plan’s existing child media and ICT projects, which help children produce high quality material that is relevant to them and promotes their rights.

Producing their own digital media is often revolutionary for many children, providing them with the chance to gain self-confidence and further influence their own future.

Tackling child poverty

Boys participating in a Plan child media project

Access to and use of ICT is a vital element in helping to tackle poverty and improve the respect, fulfillment and protection of children’s rights. It is an important tool for children and youth to make their voice heard and to learn about issues that are relevant for them.

Plan’s chief executive officer Tom Miller said: “Plan is committed to working in partnerships, not only with local groups or governments in the countries where we work, but also with like-minded corporate organizations like Nokia. I believe that this cooperation will deliver long-term sustainable benefits for hundreds of communities in the developing world.”

Plan