Tag Archive for 'Technology Adoption'

How accessible is Open Source to micro enterprises?

Recently I have been working with an Irish micro enterprise who is looking to update their web site. The web site is relatively straight forward and the functionality required is “de-facto” standard for most online trading web sites. So I thought that this would be an ideal opportunity to encourage the use of an Open Source Content Management System (CMS).

The theory is simple. Having listened to a few web designers pitch their services for the development of the site it became obvious that all were suggesting the use of proprietary solutions to handle updating the site content. [Explanation: The site, at its simplest, is a set of web pages that need to be updated frequently with new content. All the designers were offering this functionality as part of their service. The designers had developed software of their own over the years that allow this functionality to be provided. The end result is that the site owner can edit the pages online.]

The issues with such a solution are:

  1. Who owns the software? What are the Intellectual Property issues? For example, can I modify the software, if I sell the business (and the site) can the buyer modify the software?
  2. The site owner is potentially “locked in” to using the designer for future updates.
  3. The site owner may be overly restricted in where they can host the site as the proprietary software that allows for online editing may require “uncommon” technologies.
  4. What happens if the designer goes out of business?

Open Source holds the promise of addressing most, if not all, of these issues, as:

  1. The software license for many Open Source products allow for the software to be modified and resold.
  2. Popular Open Source products have a large community of developers that support the product and thus provide a healthy market for product support.
  3. Many Open Source products use “ISP friendly” technologies.

The theory started to fall apart a bit when applied in the context of an Irish micro enterprise seeking to use an Open Source CMS. So where does it fall apart? Essentially the lack of an Irish based Open Source CMS industry. I found it very difficult to find Irish based developers who specialise in any of the popular Open Source CMSs. There are some out there but the list is short. Why do they need to be Irish based I hear you ask, because the enterprise developing the site would like to meet face-to-face with the developer, get a feeling for what they are like. The enterprise, and this is true for many enterprises, feel the need to tread carefully when investing in technology, not that they don’t appreciate its value but because it is something they don’t fully understand.

So what can be done to overcome this barrier to adoption?

  1. If the enterprise was willing to learn the skillset required to use (in the broadest possible sense) an Open Source CMS then there would be no need for the “middle man”. True, but most micro enterprises neither have the time, resources or inclination. It’s not part of their core business. Which leaves me wondering whether those enterprises who can take the Open Source product in-house and upskill are the ones who will benefit the most from Open Source.
  2. Train micro enterprises in the use of online communication and collaboration technologies so that they don’t feel a need to meet face-to-face with the developer. This would certainly open up a huge market for Irish micro enterprises.
  3. Encourage and assist Irish web designers to adopt Open Source products as part of their offerings. For example, here at Tipperary Institute we could offer training targeted at Irish web designers.

The use of an Open Source CMS is not without its disadvantages, but for the time being this choice simply isn’t available to most Irish micro enterprises.

How the world is adopting technology

A recent New York Times article discussed how American households spend their money. The article presented a graph on the rate of technology “consumption” amongst US households.

Consumption Rates NY Times

It shows, for example, that the Internet was adopted by just over 60% of households within a 15 year period (1990 - 2005), it took approximately 45 years (1927 - 1972) for the same percentage of households to adopt the washing machine, approximately 20 years (1927 - 1947) for 60% of households to adopt the refrigerator and approximately 10 years (1923 - 1933) for 60% of households to adopt radio. The graph suggests that while adoption of technology is taking less time, adoption rate is also linked to the consumers perceived value of the technology in question.

The World Bank’s recently released its Global Economic Prospects: technology diffusion in the developing world 2008 in which it documents that the rate of technology adoption in poor and middle income countries during the past century was far greater than that in “developed” countries (160%, 100%, 77% respectively).

TechAdoption-EconomicReport

With regard to the definition of technology achievement, the report describes it as:

a broad definition of technology and technological progress, one that encompasses the techniques (including the way the production process is organized) by which goods and services are produced, marketed, and made available to the public.

As for the reason behind the difference:

A sustained policy of increased openness to foreign trade and foreign direct investment (FDI), plus increased investments in human capital, have contributed to substantial improvements in technological achievement in developing countries over the past 15 years.

AdoptionFramework(Resized)-EconomicReport

Links to New York Times article, graph and Global Economic Prospects: technology diffusion in the developing world 2008