Monday, April 15, 2013

Two Potential Risks: A New Paradigm and Technophobia


A few months ago, I started a new social venture: Ciento 25. This is a project that looks to promote innovation and the use of technologies for entrepreneurs with insufficient finance opportunities and limited access to technology knowledge. The goal is to increase productivity in the micro, small, and medium size enterprises in Mexico.

Last week, I was questioned about the potential risks, or inadequacy of using technologies in the project. The idea is that the project could be slightly risky because the use of technologies by people with limited technology knowledge, or in some cases illiterate due to two potential issues: (1) Technologies represent a new paradigm for entrepreneurs; and (2) Entrepreneurs could be technophobic. In order to clarify these ideas, I will exemplify one potential entrepreneur for Ciento 25 that could faces one, or both of the issues previously listed.

Imagine a 35-year-old man, Juan, who only attained until 6th grade of school. He decided to move from a small village in the countryside of Mexico to Mexico City. He knows how to read, write, and make basic calculations such as additions, and subtractions. He has never had a contact with a computer, consequently the Internet. But he has a great asset; he prepares the best pork tacos of the region. A lot of people go everyday to buy his tacos. Juan is happy because is selling enough tacos to sustain his wife and two children, but he does not know that he could earn even more money, and in an easiest way just by using a couple of technologies such as a cash register to have a better accountability, and a point-of-sale terminal to accept credit cards.

Now imagine that Ciento 25 approaches Juan and offers him a project to improve his business by using these two technologies. Ciento 25 must find the way to lessen potential risks. This represents a challenge because the use of technologies for Juan will be a new paradigm. After running his business, probably, for a year, he will be comfortable with the way he is doing business. How can Ciento 25 make him to change this? Probably if he would be in a hurry for making more money, he could be willing to take the risk, and change. But, what could happen to all Juans that are not in a hurry, but they can improve their business by using technologies? How can we modify their paradigm?

Furthermore, Juan could be afraid of using technologies, especially when these will be related to the management of his family’s income sources. Wikipedia defines technophobia as the “fear or dislike of advanced technology or complex devices.” Ciento 25 should create a service design that takes into account this couple of issues. Something not complicated that Juan can understand, and not be afraid of it, but also something not too simple that makes a real improvement in the productivity of the taqueria.

According to the World Bank, there were more than 94 million mobile cellular subscriptions in Mexico in 2011. If this were a one-to-one relationship with population, more than 84% of Mexicans would have access to mobile technology. This could suggest that mobile technologies in Mexico are widely used. Ciento 25 should take advantage of the success of mobile devices to reduce these potential risks, such as point-of-sale terminals configured in mobile devices, or even their business accountability configured to their mobile device. We will expect that our entrepreneurs could have affinity to the mobile devices, which could reduce the risk of new paradigms and technophobia.

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