You may want to look at the general business case for serving the poor as customers and entrepreneurs - as developed by CK Prahalad. It is as true in the specific case of digital technology as it is in the general case. Also, think of it this way: Metcalfe's law states that the value of a network equals approximately the square of the number of users of the system. So leaving anyone off the network diminishes its value.

At 12:31 PM 2/13/2006, you wrote:
Hello to all...I'm an MBA student at Wharton conducting research on the digital divide...I'm looking to make a business case for why businesses (in particular the private sector) should invest their resources (time, money, human capital, etc.) in programs that bring those currently outside the digital revolution into the fold. My focus is to develop a true value proposition that is based on economics vs. social responsibility / equity.

I'd like the thoughts of this group relative to existing research or data on this topic, if it exists, or minimally any reactions to the following line of thinking (and more importantly, extensions with points I've yet to consider):

1. For communication providers (comcasts, verizons, etc.) I believe the value proposition is related to a potential untapped market--by developing the technical / digital competency of this target population, you are grooming potential customers for your products / services (therefore the size of the divide becomes a very relevant variable in the economics).

2. Developing additional supply for workforce needs (my guess is that someone has probably done some research here---but not sure how persuasive this is) I'm hopeful that there is much to this that I've missed but those are the initial stabs at creating the valuation proposition--which can be simplified into creating addtional demand for products / services and creating more supply to deliver these products / services (as may be evident in my overview above, my thoughts are very focused on the US and not a global perspective which may have to be broadened to truly capture the value proposition for these large organizations).

All thoughts welcomed...thanks in advance for your time and patience.

Regards,

Jim Smith

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Kenan Patrick Jarboe, Ph.D.
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