Categories
Archive

Radical Drone Solution To Woeful Infrastructure In Poor Countries

New UNOSSC banner Dev Cha 2013

Drones – unpiloted aircraft, formally called Unmanned Aerial Vehicles (UAV) or Unmanned Aircraft Systems (UAS) – have long been used for military purposes. The U.S. military claims to have 7,500 drones – a massive growth from just 50 a decade ago – and has used them for surveillance and combat in conflicts from Afghanistan to Iraq.

Drones can cost anywhere between a few thousand and millions of dollars depending on their size and sophistication. Some weigh as little as half a kilogram, and the largest can reach 18,000 kilograms (19 tons).

It is estimated 40 countries around the world are working on drones in one capacity or another.

Military drones come with ominous-sounding names such as Predator, Fire Scout, Global Hawk and Hunter. But many pioneers and innovators are setting out to prove drones can be a technology of peace and development and not just of fear and war.

YouTube provides many examples of drones being tested out as a delivery method. SF Express (http://www.sf-express.com/cn/en/product_service/product_intro/airline_delivery.html), a courier service in Dongguang, China has tried delivering parcels by drone. It is using a drone with eight rotor blades, called an octocopter (http://www.steadidrone.eu/octocopter-ei8ht/).

In Shanghai, the InCake bakery has used drones to deliver cakes (http://www.youtube.com/watch?v=fXwgwSkujOY). The service was brought to a halt after complaints from citizens, worried the drone would crash into someone.

The American pizza chain Domino’s has been testing drones for delivering pizza in the United Kingdom (http://www.youtube.com/watch?v=ZDXuGQRpvs4). A British company has used drones to deliver sushi to restaurant tables in London (http://www.youtube.com/watch?v=WV0yQYXLU34).

These may prove to be novelty experiments – or the early days of a revolution. Time will tell.

But serious thinking about drones is taking place in the area of development.

One pioneering company thinks it has a solution for two big problems common to many developing countries: the chaos, congestion and crowding that clog urban areas; and the poor or non-existent infrastructure in rural areas. Both problems make it expensive and time-consuming to move goods around.

A billion people in the world do not have access to all-weather roads, says the World Bank. Some roads are being upgraded in parts of sub-Saharan Africa but many are in worse shape than they were decades ago. Modern infrastructure is expensive to build, and the funds to do it often must be borrowed.

A startup called Matternet thinks it has the solution to getting around this problem in Africa, and in rapidly growing cities of the global South. It believes drones can come to the rescue where infrastructure is poor or non-existent, and save valuable wealth that can be diverted to real improvements in human development, or used to reduce congestion in crowded urban areas.

The Matternet (http://matternet.us/) is billed as “the next paradigm for transportation.” Matternet is offering a system and a concept for deploying drones as a scalable solution to overcome the problem of poor transportation networks in developing countries.

The artist’s vision on Matternet’s website shows drones buzzing their way through an urban high-rise landscape as they go about their business.

The Matternet drone design has two wings with three fans in each wing to allow it to take off and land vertically as well as flying in a straight line. There is a 10 litre space for packages and a rechargeable battery at the bottom of the drone. The drones can fly at 40 kilometres an hour, at an altitude of up to 121 metres and are guided by GPS (Global Positioning System) (http://en.wikipedia.org/wiki/Global_Positioning_System).

The drone moves in and out of a ground-station landing pod, where it is recharged, picks up new packages to deliver, and connects electronically to receive instructions. An entry and exit slot sits on top of the pod while there is a place at ground level for people to pop in packages for delivery.

Each vehicle costs US $1,000 and can last 10 years, the makers claim. Matternet believes the drones could transport 2 kilograms over 10 kilometres for just 24 US cents a trip.

Matternet’s Andreas Raptopoulos (https://www.solveforx.com/moonshots/physical-transport) hopes to push Africa away from simply upgrading its infrastructure along the lines of what is already in existence in developed countries. It is estimated it will take Africa another 50 years to have an infrastructure equal to North America. But why wait so long? Why not, he argues, just use drones or UAVs to knit a transport infrastructure criss-crossing the continent delivering goods and services to people?

Radical drone advocates like Matternet are very ambitious. They believe drones are to infrastructure what mobile phones have been to telecommunications: an advanced, 21st-century technology that enables countries to leapfrog ahead of old-school 20th century infrastructure and connect people up for much less cost and effort.

Imagine a city in the global South 15 years from now: canyons of high-rise buildings stretch from the central business district out to the suburbs where apartment towers replace office buildings. And whooshing through these canyons will be the drones carrying everything from takeaway food to medical supplies to the latest fashion items.

Anywhere in Africa can currently contact Matternet to arrange a trial of the technology (http://matternet.us/get-matternet/). The concept had field trials in the Dominican Republic and Haiti in the Caribbean. A large field test trial is being arranged for Lesotho, where the drones will help with delivering supplies to clinics serving patients with HIV/AIDS. The 47 clinics are spread out over a 138 square kilometre area and will be served by 50 ground stations and 150 drones at a cost of US $900,000. In comparison, building 2 kilometres of a single lane road would cost US $1 million.

Matternet is based in Palo Alto, California and founded by partners Andreas Raptopoulos, Paola Santana, Dimitar Pachlov and Darlene Damm.

It was conceived at the Singularity University (http://singularityu.org/) whose mission is to educate, inspire and empower leaders to apply exponential technologies to address humanity’s grand challenges.

By David South, Development Challenges, South-South Solutions

Published: October 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Other stories from Development Challenges, South-South Solutions:

African Digital Laser Breakthrough Promises Future Innovation

China Looking to Lead on Robot Innovation

Digital Mapping to put Slums on the Map

New Weapon Against Crime in the South

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=I_hcAwAAQBAJ&dq=development+challenges+october+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-october-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

Categories
Archive Blogroll

Designed in China to Rival ‘Made in China’

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Harnessing the power of design to improve products and the way they are manufactured is a critical component of successful economic development. And the high export value of designing and making “computer equipment, office equipment, telecommunication equipment, electric circuit equipment, and valves and transistors” was flagged up as a priority for developing nations back in 2005 at a meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

One country taking up this challenge is China. It now boasts twice as many Internet users as the United States, and is the main global maker of computers and consumer electronics, from toys to games consoles to digital everything.

China is also on course to become the world’s largest market for Internet commerce and computing.

The centre of gravity is very much moving China’s way: One study of 769 firms investing in 2,203 Chinese companies by Stanford University in California, found “the same firms that were successful in Silicon Valley … have transplanted their expertise to China,” according to Marguerite Gong Hancock in The New York Times.

But the country wants to move from ‘Made in China’ to ‘Designed in China’. This is critical because the majority of the profits to be made are actually in the designing, patenting and marketing of products. Manufacturing, as has been shown in the recent media controversy over the products made by Apple (apple.com), is not the main profit centre.

Apple employs 43,000 people in the United States and 20,000 overseas. But through its network of sub-contractors,the number employed overseas in Asia, Europe and elsewhere is around 700,000 (The New York Times). This includes around 200,000 assembly jobs in China. These workers can make US $17 a day or less.

Apple makes hundreds of dollars in profit for each of its iPhones. Apple can do this because it is the designer of the phones and holds the copyright, and it is the branded company that has built up its reputation and developed a highly sophisticated marketing and distribution network around the world. Through clever use of design, Apple created products that look distinctive in the marketplace. And those are the factors that determine the ability to make this profit. As has been noted, it isn’t just cheap wages that keep Apple’s profits high.

Getting consumers to desire and buy your products is a challenge for any company. Design plays a major part in understanding the unique demands of countries and markets, and what people find appealing or repellent.

A product that has both a successful design and is produced efficiently will generate a good profit.

The classic example from the past is Japan. Devastated during World War II, Japan set about re-building its manufacturing prowess from scratch. It brought in American innovators to introduce new concepts in manufacturing.

Japan’s openness to the new ways enabled it to re-fashion its manufacturing industries to exporting to the developed Western nations, in particular the United States. At first, quality control was an issue and Japan was mocked for making cheap quality trinkets, toys, automobiles and motorcycles. But it quickly changed from this to a reputation for making quality, affordable products and moving quickly into the burgeoning micro-electronics and consumer products markets. It also was a pioneer in computer gaming and entertainment.

The recent achievements in supercomputing in China are pointing to where things can go. China has developed the Sunway Bluelight MPP supercomputer (http://en.wikipedia.org/wiki/ShenWei). It is able to do a quadrillion calculations per second: making the Sunway Bluelight one of the 20 fastest supercomputers in the world. It was built with a Chinese-made microprocessor, and importantly, uses lower amounts of power than other supercomputers.

The clever bit is the ratio of computing power to wattage used. Energy-efficient computing is critical if computers are to make the jump to the next level in processing power.

All these trends coming together hint at big changes in the coming years.

In the past two decades, the electronics sector has enabled a number of developing countries to improve trade performance, in particular East and Southeast Asian nations.

Improving education is critical to the growth strategy. Improving education, like encouraging the pursuit of engineering as a profession, as China has done – it now has more than half a million estimated graduates, the most in the world – means new skills and ideas are coming to the industry (engineeringinchina.net).

But this is not enough. New ideas are essentially a creative process and this needs connections to business and the ability to experiment and play with ideas. Start-up incubators have proven a successful way to do this.

Thailand is a good example: Around US $4.5 billion was invested in the country’s electronics industry between 1986 and 2001. This created 300,000 jobs. The sector became so important it made up a third of the country’s exports.

Realizing that much of the work was assembly manufacturing, the government set up the Thailand IC Design Incubator (http://www.nectec.or.th/rd/electronics/be204-45/be204-45.php) to work on hard disk drive development and move up the value chain.

“In 1978, I saw workers stringing together computer memories with sewing needles,” Patrick J. McGovern explained to The New York Times. McGovern is the founder of the International Data Group, which invests in Chinese enterprises.

“Now innovation is accelerating, and in the future, patents on smartphones and tablets will be originated by the Chinese people.”

In the past, China was not able to make significant progress on this development for two main reasons. The first is copyright piracy and theft of intellectual property rights. During China’s economic rise, this theft was rampant and the country developed a reputation for being home to a vast marketplace of knock-offs of major Western brands. And the second reason was the heavy hand of the government, which scared off many entrepreneurs.

But China is re-structuring its industries to focus on innovation. In 2011, China surpassed South Korea and Europe in total patents and was in a neck and neck race with Japan and the United States. As fuel for the innovation rocket,venture capital is critical. And China is now the world’s second largest venture capital market, with the total jumping from US $2.2 billion in 2005 to US $7.6 billion in 2011.

It is this journey up the manufacturing ‘value chain’ that many countries look to with admiration and jealousy. And the secret to being able to move up this value chain is design – savvy product design combined with savvy design of manufacturing methods to continually drive down costs and drive up quality. How long until China has its own Apple and not just an Apple knock-off (http://www.bbc.co.uk/news/technology-14503724)?

Resources 

1) Red Dot: The red dot logo stands for belonging to the best in design and business. The red dot is an internationally recognised quality label for excellent design that is aimed at all those who would like to improve their business activities with the help of design.Website: http://www.red-dot.de

2) Dutch Design in Development: DDiD is the agency for eco design, sustainable production and fair trade. They work with Dutch importers and designers and connect them to local producers in developing countries and emerging markets. Together products are made that are both profitable and socially and environmentally sustainable. Website: http://www.ddid.nl/english/index.html

3) C3: C3 offers product design and product engineering services in Shanghai, China. Their strong point is managing innovative design processes from scratch (market research) until production: a one shop service: Website: chinacreativecompany.com

4) Dahua: Zhejiang Dahua Technology Co., Ltd. is a partially state-owned publicly traded company based in Hangzhou which sells video surveillance products and services.  Leading video surveillance product and solution provider in IP camera, NVR, HD cctv camera, Analog, PTZ and other vertical solutions. Website: https://www.dahuasecurity.com/uk

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

The NEEMIC brand, founded in 2011, makes sustainable fashions and champions green production methods in China. 

Read more here: Creating Green Fashion in China

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

Categories
Archive Blogroll

China Sets Sights on Dominating Global Smartphone Market

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

The rise of smartphones – mobile phones capable of Internet access and able to run ‘apps’ or applications – is the latest wave of the global connectivity revolution. Mobile phones rapidly made their way around the world to become almost ubiquitous – the most successful take-up of a piece of communications technology in history – and now smartphones are set to do the same. The number of mobile phone subscriptions in the world surpassed 6 billion in 2012 (out of a population of 7 billion) and, according to the International Telecommunications Union (ITU), the number of mobile phones will exceed the world’s population by 2014.

Over the last five years, with the increasing popularity of smartphones, the focus of the mobile industry has shifted from voice and messaging to apps and data services.

Smartphones are complex pieces of technology and any country that can develop the capability to make them and innovate is set to make a lot of money.

The high export value potential of designing and making “computer equipment, office equipment, telecommunication equipment, electric circuit equipment, and valves and transistors” was flagged up as a priority for developing nations back in 2005 at a UN meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

At present, smartphones have a long way to go to surpass old-style mobile phones: by the end of 2016, according to Portio Research (portioresearch.com), the number of non-smartphones in the Asia-Pacific region alone will still be bigger than the entire worldwide number of all smartphones. Even so, it’s predicted that by 2016, there will be 555 million active smartphones in China alone, as well as half a billion smartphones in Europe by the end of 2014. By 2013, North America’s smartphones will make up 50 per cent of all mobile phones. All in all, a lucrative market.

The main factor holding back the rise of smartphones is price. Smartphones tend to cost more than a basic mobile phone. But as China gets more heavily involved in the smartphone marketplace with its own smartphone and mobile phone brands, low income consumers will find themselves with a wider choice of affordable and powerful smartphones, each one a mini-computer.

Out of the 10 largest global manufacturers of smartphones, four are Chinese: Lenovo, Yulong, Huawei and ZTE (Gartner).

Huawei (http://www.huawei.com/en/), the world’s biggest smartphone seller (according to research firm Canalys) (canalys.com), has started to move some of its design team to London in the United Kingdom, to better tailor its products for foreign markets. It has revenues each year of US $35 billion.

China’s mobile phone market is vast, accounting for a third of all smartphones sold in the world. Getting a foothold in this marketplace places a company in a very strong position to build the expertise and capital to push into the wider global marketplace. And that is what Chinese brands are starting to do. So far, Chinese exports of branded smartphones make up a fifth of those sold around the world (Canalys).

The big global competitors to date have been South Korea’s Samsung (samsung.com) and the American Apple brand (apple.com). Other large competitors are Canada’s troubled Blackberry and Finland’s Nokia.

To compete with them, popular and successful Chinese brands include Xiaomi (xiaomi.cn), which sells more mobile phones in China than does the American Apple brand, and ZTE (http://wwwen.zte.com.cn/en/).

For years, many of the top global brands have had their phones and the components manufactured in China. This meant Chinese manufacturers were assembling the phones but not benefiting from the high value that can be extracted from being the owner of the brand name and the originator of the innovation and holder of the copyrights and trademarks.

But now China’s Lenovo brand (http://www.lenovo.com/uk/en/), for example, has successfully pulled past U.S. electronics maker Hewlett-Packard (www.hp.com) to become the largest seller of personal computers in the world. It is also selling more mobile phones and tablet computers than personal computers.

Lenovo Chief Executive Yang Yuanqing espouses a two-part strategy to defend market share at home in China while going hard at overseas markets. Lenovo started with so-called emerging markets in Russia, India and Indonesia.

“We have very aggressive plans to explore overseas markets,” Lenovo’s mobile phone division head Liu Jun told China Daily. “We hope the overseas market will contribute more than half of Lenovo’s total smartphone revenue in the long run.”

Xiaomi founder Lei Jun is considered part of a new generation of dynamic Chinese technology leaders. His casual clothing and charismatic public presentations have had some equate him to the late Apple founder Steve Jobs. But Jun is not happy with selling smartphones and instead sees the company’s future in software and that the phones are just a tool to access the software. Xiaomi hopes to make even more money from selling games, running online marketplaces and offering social media.

The Chinese-made smartphone brand Coolpad (http://coolpadamericas.com/) – made by Yulong Computer Telecommunication Scientific Co. – is the third best-selling in the Chinese marketplace, surpassing Huawei and Apple and has global annual revenue of US $1.8 billion, according to Forbes magazine. Sino Market Research found 10.2 per cent of China’s smartphone users own a Coolpad, behind Korean brand Samsung and China’s Lenovo.

Coolpad has succeeded by investing heavily in research and development (R&D) and innovation to make the phones cheap but also powerful.

Innovations include technology that lets users have more than one phone number for the same phone by being able to connect to two different network technologies. The phones also include security and privacy protections that make them popular with businesspeople and government officials.

The Coolpad brand has also been frenetic in launching different models of the phones to appeal to its customers. In 2012, it launched 48 different models, selling for between US $50 and US $500.

Coolpad was launched in 2012 in the US as part of the company’s global expansion plans.

China has placed innovation at the core of its economic development policies. China increased its R&D spending in 2009 to US $25.7 billion, a 25.6 per cent rise over 2008, according to Du Zhanyuan, vice minister of the Ministry of Science and Technology. In 2011, China surpassed South Korea and Europe in total patents filed and was in a neck-and-neck race with Japan and the United States.

China now boasts twice as many Internet users as the United States, and is the main global maker of computers and consumer electronics, from toys to games consoles to digital everything.

China is also on course to become the world’s largest market for Internet commerce and computing.

The drive to change and transform China’s global economic role was promoted in 2011’s Beijing International Design Week (http://www.bjdw.org/en/), with its theme of transforming “Made in China to Designed in China.”

Resources

1) iHub Nairobi: iHub – Nairobi’s Innovation Hub for the technology community is an open space for the technologists, investors, tech companies and hackers in the area. This space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and researchers. Website: http://www.ihub.co.ke/

2) Venture Capital for Africa: Venture Capital for Africa (www.vc4africa.biz) is the continent’s leading founder’s network, the largest and fastest growing community of  entrepreneurs and investors building promising companies in Africa. Website: https://vc4africa.biz/

Red Dot: The red dot logo stands for belonging to the best in design and business. The red dot is an internationally recognized quality label for excellent design that is aimed at all those who would like to improve their business activities with the help of design. Website: http://www.red-dot.de

C3: C3 offers product design and product engineering services in Shanghai, China. Their strong point is managing innovative design processes from scratch (market research) until production: a one shop service: Website: chinacreativecompany.com

North Korea Tech: North Korea Tech is dedicated to covering and collecting information regarding the state of information technology and related industry in North Korea. You can expect to find articles related to Internet connectivity in the country (yes, it does exist), North Korea’s use of technology, and the country’s centrally-controlled and heavily-censored mass media. Website: http://www.northkoreatech.org/

Published: September 2013

ISSN 2227-3905

Google Snippit December 2020.

Note on story: Very few outside of China in 2013 were talking about this topic, let alone the increasing market share of smartphone manufacturer Huawei. This was one of many stories to result from a research trip to China. For the keen-eyed, try and spot the Huawei logo in the accompanying photo taken in Tianjin.

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021