Yesterday, I got this comment to the presentation on Slideshare where I initially outlined the project “OLPC for Vatsalya Orphanage”. I started to answer a few lines and realized that I got drawn into some fundemental considerations which I thought it’s better to share here on my blog. This is the comment as a screenshot, my answer below.
Thanks for your appreciation of the project. At the same, time I am not convinced that a competitive comparison between “Sugata Mitra” on the one side and “Professor Negroponte” on the other side really addresses the key question. Turning too much to this aspect, in my opinion, distracts the focus from effective deployment of OLPC laptops into a somehow dogmatic debate what in the essence are nuances.
I was surprised to learn yesterday after a phone conversation with Mr. Satish Jha, Head of OLPC India, that there are economic constraints to deliver 11 computers. Therefore OLPC India is trying to bundle at least orders of 100 computers to make it economically feasible. In other countries, the number is rather up to 10,000 minimum units. Point taken, still quite a lot of “foregone demand” in the long tail.
Back to our project at hand: There is no doubt that 50 computers for 50 children are better than 10. This however, means stating the obvious as much as: Everyone will prefer drawing an annual salary of $250,000 instead of $50,000.
The “scarcity of resources” is such a fundamental aspect in economics, that I don’t intend to bore anybody to death detailing it further. In conjunction with the all agreed “law of diminishing returns” we can’t avoid to ask the question: Is 5 times the number of computer with 5 times the capital investment 5 times as effective? I don’t think so. Therefore, after long consideration, I deliberately decided to set this project up in such a manner that we keep it to 10 computers for 50 children (plus one for the teachers to get acquainted.)
Pushing the project ahead, I also started the realize that making this admittedly small-scale project a success, other challenges need to be solved:
- Bringing broadband internet to the orphanage which is cost effective and does not explode in cost once you come above the in India common monthly data-volume cap (=no flat-rate)
- Installing some rudimentary furniture for tables and chairs
- Electricity (it’s there, more rather cabling, so not really a problem)
These adjacent aspects obviously also “scale” with more and more computers, which I had barely included in the funding. (No issues, I’ll get that solved with my own money.) What I learnt as an entrepreneur is following a bold and big vision, but keeping single bits & pieces manageable. The scope of this initial project follows pretty much this path. I don’t rule out, as we move along the leaning curve and finalize this project, to raise additional funds and buy more laptops for the same orphanage.
Given the scenario which is unfolding, we will tightly keep to our initial plan to obtain 11 computers. Mr. Jha yesterday promised yesterday during our phone call that he’ll get back to me in order to let me know if and how he’s able to bundle the 11 computers into a larger lot. First and foremost, this is something we should focus to get solved.
One, for this particular project “OLPC for Vatsalya Orphanage”, but in my opinion also for “hundreds of other requests for small-scale orders to OLPC India” which Mr. Jha mentioned during our conversation.
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