Business always lies in the hands of risk and uncertainty. Admittedly, the usage of technology helps to capture the lag effects of (information) on risk-return equation for any ventures and tries to increase probability of payoff and ultimately, profit to the claimant or entity. This phenomenon is obvious and episodic in nature of business observed, factually documented, and analysed in the realm of technology, especially, information and communication technology for development (ICT4D; Heeks, 1996).
Today we are more obsessed with this term as a mimic of technological innovations, which has been experienced by many organisations, academics, and policy makers, namely, Microsoft, Digital Green, Labour-Net, Mobile Banking-organisations or micro finance organisations (EKO, FINO), SMEbusiness entities (Rangasutra), and many more. Having said that, the application of ICT coupled with diversity of inputs and innovations regimes are critical to the central theme of development of “rural business” through a proximal usage. Once upon a time, Bill Gates coined a term, “category error” which asserts that why should we give a poor family a computer when they need food. Similarly, why should we consider ICTs for development when there are so many pressing agendas?
Appropriate, affordable, accessible technologies, if not complex ones, provide an effective solution to the problem in rural areas where literacy, nutrition, sanitation - all are burning issues and these have created pressing needs for the rural poor. Technology in this context should be viewed as a tool, not the goal to augment the business opportunities.
Digitizing rural: Prospect lies there
If the above argument makes some sense, it is then evident that we perpetuate to or live in knowledge or information based network-society (Castells, 1996). Arguably, are modern ICTs the best tools to enhance communication and close knowledge or information gaps? Is it a digital divide? To succeed in any business, information plays a vital role. Mostly, rural businesses suffer from information asymmetry. Infrastructural inadequacy is another hindrance which makes the rural business handicapped very often.
So, technology in terms of providing better information and suitable infrastructure are always a welcome step. A few secondary research shows that when rural business ties the knot with technology, it increases total efficiency in the entire supply chain not only to the kiosks (Kuriyan and Toyama, 2007; Sey, 2009. This reminds us about the examples of ITC-eChoupal for Soybean procurement at Dewas and Ujjain districts of Madhya Pradesh, and Saksam-a rural kiosk in Karnataka, a Microsoft initiative; Saravanan et al., 2007. We can also look at the success of Rural Technology and Business Incubator (RTBI), emerged from the incubation cell of IIT-Chennai in 2006 (in collaboration with nlogue) to promote entrepreneurship for sustainable development besides, diversifying inputs for innovations in the gamut of agriculture, education, and vocational training.
Similarly, Labour-Net is another example of ICT4D which has promoted informal-service sector market place for micro-entrepreneurs and workers. Benefits the organisation render are customised by improving employability, locating service providers, offering increasingly trained service providers who can deliver quality services to clientele.
On the other hand, Digital Green (funded by Melinda and Gates Foundation) is a reference of cost-effective technology driven organisation for promoting sustainable agriculture using cloud-based database linked with local database system (COCO model). Hand-holding with many NGOs, viz., ASA, PRAGATI, VARRAT, Access, PRADAN, Digital Green would be able to transform odd 1,200 villages of rural India (which are predominantly inhabited by 60,000 small land-holders) since 2004. A pilot survey conducted encompassing 12 villages in 2006-07 was a landmark achievement for the organisation.
Technology also promotes transparency and readiness of work in several departments of the government. E-Sewa (Andhra Pradesh), Bhoomi (Karnataka), Gyandoot (Madhya Pradesh), E-Gram (Rajasthan) are few initiatives which came in the late nineties or early twenties at the behest of government of India (Kumar, 2009).
In some ways, banking sector in post-financial reforms has witnessed significant changes of deliverables in the realm of technology and innovation. Mobile banking (EKO) is a good example. This intervention as a form of business-correspondent (BC-FINO) model has been benefiting the customers and agents in a way that has secured usability with low cost technology to promote an alternative channel for money transfer or remittances, deposits mobilizations in remote areas. Hence, prospects are many but implementation is critical and thus, requires a contextual understanding.
Few caveats so far unresolved
Institution building is important to promote the technology in the hinterland. A bottom-up approach may help in doing the task effectively. Translation-on the ground realities of achieving a broad vision should be a motive of any profit-seeking firms. On the other hand, adoption of technology is influenced by a number of factors, namely geopolitical processes, proximity of institutions, market linkages, and internal beliefs of the target groups in the rural areas (Maitra, 2010). Hence, awareness, usage, readiness, and adaptation are few key determinants that ultimately decide the success (failure) rate of the information technology for any business in the rural proximity. It is not for only information technology but also for other technologies which increases the operational efficiency in business. When we talk about technology and its adoption, an eye browsing question regarding the acceptance of technology by rural users remains unanswered. As rural people are accustomed to a unique socio-cultural system, technology which suits their system, language and traditional aspects would readily be accepted. Hence, unionizing rural business and technology help to unearth a set of challenges to the technocrats or technology developers.{t}
Mr. Debashish and Mr. Kushankar are currently third and fourth year doctoral students at Institute of Rural Management. With copious amounts of work experience in their respective fields, a common passion for ‘finance’ binds them together. Mr. Kushankar is also a recipient of RBI Unit Chair Fellowship in the area of Rural Economics and National Resource Management.