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Rome, Italy – Feb 20 th, 2008 Mark Davies
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The challenges... Long transaction chains Small volumes Highly varied Poor standards No transparency Price instability Inefficient Few alternatives
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market information systems are not new.... But have rarely worked for the people
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A new approach is needed... Timely & accurate... De-centralized... (user2user) Community based... (value chains) Market oriented... (offers, brokerage, linkages) Sustainable Profitable!... (paid for)
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How big is big?
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9 principles: Communities will be the vehicle Community leaders the engine Communities can be defined many ways Users will not use PCs Users should not have to use phones We enhance not re-invent business We need mediators, mentors & teachers Our focus is on increasing choices & efficiencies We are judged by our ability to put money in pockets
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MIS consists of three elements To be successful: technology TradeNet implementation MISTOWA (wafrica) FOODNET (uganda) Technoserve (moz) IFAD (vietnam?) 123 biz model TradeNet
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Tradenet has most innovative Technology available: Mobile2Web Peer2Peer Fully Customizable Web Services Spot Market Prices Offers to Buy & Sell Contact Directories Customizable Group Sites Customizable Personal Sites Interactive Maps RSS data feeds Automatic SMS Alerts Multi-Country views Multi Currency Multi Language
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technology
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SMS2web SMS price uploads SMS alerting service
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Powerful SMS Alerting tools...
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Powerful Price analysis tools... this year so far...
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Maps showing prices, offers, users... Linking 533 markets in WA
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Offers: mobile2web
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RSS: custom views on your website
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Customize host privileges & monitor data
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But our real focus is on building tools for communities to express themselves... Our philosophy is to reflect market activity Not re-invent it
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Free tool for communities... A village, a filiére, an occupation...
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Filiéres... prices, buyers, news, offers, etc....
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Free websites for your members... Profile, history, photos, ranking...
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Tradenet has most innovative Technology available today: Mobile2Web Peer2Peer Fully Customizable Web Services Spot Market Prices Offers to Buy & Sell Contact Directories Customizable Group Sites Customizable Personal Sites Interactive Maps RSS data feeds Automatic SMS Alerts Multi-Country views Multi Currency Multi Language Coming in 2008/2009: Weather Feeds Transport Services Accounts & Payments Field Data Crop Management Crop & Pest alerts Inventory Control Supply Chain Financing Brokerage Services
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Easier phone applications
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Production data from field planting transport Processing/storage disease maturing
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But linkages are not just about producers & buyers... producertransporterstockistbankbuyer There is a community at work
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Inventory management & supplies for stockists and input suppliers Improved inputs = improved productivity “We can find Coca-cola everywhere but not seeds or fertilizer...” Inventory management
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SMS alerts on arrival, availability & cost Plotting trucks via SMS onto TradeNet maps Transport Alerts
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implementation
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p We target the bottom half of the pyramid large exporters medium business Small traders & producers Issues: Poverty Literacy Culture Access Trust
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Smart implementation is key challenge to success! mediation, sales, training local people & language permanence & trust transaction security/brokerage micro-businesses
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tools to manage and reward data enumerators...
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the model
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How to generate revenues to pay for the services: Group licenses Basic Free Gold $800 Platinum $2,600 SMS traffic Cost to Recipient 3 cents 1 cent to Mobile operator 2 cents to MIS system Sponsorships & ads Direct Marketing SMS branding 123 If 50,000 users average 5 alerts a week, annual revenues from SMS alone = USD$260,000 If 1% of Africa’s population gets five SMS a week = annual revenues of $46m
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It’s a good business! 53% return on $900K investment Profitable in year 4 or 5
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Value proposition for mobile operators Product differentiation Brand enhancement (innovation) Loyalty: Reduce SIM switching Customer Acquisition (rural focus) SMS revenues Voice revenues CSR: public/political benefits Huge marketing value to MIS
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Results so far Launched officially January 2007 $200,000 revenues ($500,000 expenses) 800,000 prices 15 countries online Over 500 markets covered $1m in deals reported by MISTOWA (USAID) 3,000 messages/day Not deployed appropriately Finance, deployment, agents & patience Monitor & evaluate to know
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Proposed Expansion 2007 (Mistowa/FoodNet) – Ghana – Nigeria – Uganda – Benin – Togo – Burkina – Senegal – Sierra Leone – Niger – Mali – Cote D’Ivoire – Guinea – The Gambia 2008 (in discussion) (IFAD, Technoserve, MCC, Chemonics, ABT, Telenor, CRS, LinkingLearners, ACDI-VOCA) – Mozambique – Madagascar – Vietnam – Bangladesh & Pakistan – Honduras & Nicaragua – Cameroon – Tanzania – Kenya – Rwanda – Azerbijan – Sudan
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Thank you! Mark Davies info@tradenet.biz
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