BRIDGING THE INNOVATION DIVIDE:
An Agenda for Disseminating Technology Innovations in the Nonprofit Sector

Presented by:

Dr. Randal Pinkett, President and CEO

November 15, 2005

University of Illinois at Urbana-Champaign

Graduate School of Library and Information Science

Agenda

Introduction
The Innovation Divide
Case Study: HP Microenterprise Acceleration Program
Factors for Innovation Dissemination
Recommendations

About BCT Partners

BCT Partners is a management, technology and policy consulting services firm that works with government agencies, corporations, foundations, and nonprofit organizations.

We are a socially responsible consulting firm that develops solutions to complex problems with a spirit of excellence, commitment, and integrity.

"Your Partner in Solutions that Matter"

About BCT Partners

Sectors

Education
Housing & Community Development
Healthcare
Human Services
Nonprofit & Community Technology
Economic Development

Markets

Educational Institutions
Government Agencies
Corporations
Foundations
Private & Nonprofit Organizations

"Your Partner in Solutions that Matter"

About BCT Partners

Services

Organizational Development &
Strategic Planning

Research and Evaluation

Web Application and Database Development

Networking and Systems Integration

Technology Planning and Strategy

"Your Partner in Solutions that Matter"

Background

Research funded by Hewlett-Packard's National e-Inclusion Initiative
Led by PolicyLink with BCT Partners
Report to be released by the end of 2005

Acknowledgements

PolicyLink

Josh Kirschenbaum, Arnold Chandler, Sarah Treuhaft, Victor Rubin, Judith Bell, PolicyLink

BCT Partners

Melissa Magallanes, Randal Pinkett

History

"The Digital Divide"

(1994)

"The Organizational Divide"

(2001)

"The Innovation Divide"

(2005)

What is the
Innovation Divide?

The lack of infrastructure and support for creating, developing, and disseminating information and communications technology innovations in nonprofit organizations and underserved communities.

Research Questions

What are the causes of the innovation divide?
How and why do nonprofit organizations adopt new technology innovations and assimilate them into their work?
What can enable more nonprofit organizations to adopt and use new ICT innovations?

Research Methods

Literature review
Semi-structured interviews
Case studies

Neighborhood Information Systems
Electronic Advocacy Efforts
Microenterprise Development Programs
Digital Inclusion Initiatives

Agenda

Introduction
The Innovation Divide
Case Study: HP Microenterprise Acceleration Program
Factors for Innovation Dissemination
Recommendations

Nonprofit and Community Context

Community

Technology

Centers

Technology

Assistance

Providers

Technology

Vendors

Community

Networks

Intermediaries

Technology

Tools

Community

Residents

Community-based

Organizations

Innovation Dissemination

Innovation

Development

Innovation

Adoption

Innovation

Diffusion

The process of creating innovations (i.e. R&D, patenting, production, etc.)

Innovation Dissemination

Innovation

Development

Innovation

Adoption

Innovation

Diffusion

An individual/organizational process of comprehension, evaluation, incorporation and adaptation.

Innovation Dissemination

Innovation

Development

Innovation

Adoption

Innovation

Diffusion

A societal or group phenomenon depicting the rate and extent of adoption.

S-Curve of Innovation Diffusion

Nonprofit and Community Challenges

Innovation development is geared toward the for-profit sector

Little market power
Few early adopters
No financial return on investment

CBOs lack resources for technology capacity building

The "80-20 rule" applies

Nonprofit and Community Challenges

Limited information flow within nonprofit sector and between public/private sectors

Mass information; working in "silos"

Agenda

Introduction
The Innovation Divide
Case Study: HP Microenterprise Acceleration Program
Factors for Innovation Dissemination
Recommendations

Case Study:
HP Microenterprise Acceleration Program

PROJECT OVERVIEW

MEAP targets nonprofit microenterprise development agencies that serve clients in low-income communities. The goal is to foster innovation both within these agencies as well as across the field at-large.

Hewlett

Packard

Microenterprise Development

Nonprofits that provide business advice, skills training, and credit to very small businesses
20 million microenterprises in the U.S. account for 17% of total private sector employment
500 microenterprise programs work with approximately 100,000 people per year (only 1% of the market)

HP Microenterprise Program

Hewlett-Packard Company
The Association for Enterprise Opportunity
BCT Partners
Microentrerprise Development Organizations

17 organizations in 2004
9 organizations in 2005

BCT Methodology

Technology Assessment
Technology Planning
HP Solution Development
Technology Implementation
Training and Sustainability Planning

HP Tablet PC tc1100

Compaq Tablet PC Docking Station

HP MAP 2005 Hardware Solutions

HP ProLiant ML370 G4 server

HP iPAQ HX4700 128/64MB US-COM

HP MAP 2005 Hardware Solutions

HP Flat panel monitor L1740

HP Wireless Keyboard and Mouse

HP MAP 2005 Hardware Solutions

HP Compaq nc6000 Notebook PC

HP Notebook Storage Cart 20-User

HP MAP 2005 Hardware Solutions

InfoCase Training Wheels 8 - PC

HP MEAP 2005 Grantees

Center for Technology, Enterprise & Development, Delray Beach, FL

ECDC Enterprise Development Group, Arlington, VA

First Step Fund, Kansas City, MO

International Institute of Metro St. Louis, St. Louis, MO

Maine Centers for Women, Work, and Community, Augusta, ME

Mountain Microenterprise Fund, Asheville, NC

Rural Opportunities, Inc., Canton, NY

Women's Opportunities Resource Center, Philadelphia, PA

Women's Rural Entrepreneurial Network (WREN), Bethlehem, NH

Microenterprise Development Innovations

MicroMentor

Online matching to connect mentors and protégés

Count Me In

Internet-based model for credit scoring and lending to women with poor credit

CircleLending

Web-enabled loan servicing software for interpersonal credit market

MicroMentor

MicroMentor Adaptations

One-to-one, to many-to-many matching
Mentor and protégé selection
Enhanced interactivity and community building

Count Me in

Count Me In Adaptations

Face-to-face not required
Credit scoring model

Marital status incorporated
Business plan not required
Business ownership redefined

CircleLending

CircleLending Adaptations

Restructure loans on-the-fly
Atypical payment schedules
Optional credit bureau reporting

Observations

Innovation is typically in use, not tools
Effective deployment combines organizational innovation (i.e. new processes) and technological innovation (i.e. software applications)
Successful efforts are community and organization-driven, technology enabled

Agenda

Introduction
The Innovation Divide
Case Study: HP Microenterprise Acceleration Program
Factors for Innovation Dissemination
Recommendations

Greater

Dissemination of

Innovations in

Nonprofits and

Communities

Mature,

Simple,

Affordable,

and

Relevant

AEO /

BCT Partners

Conferences

Newsletters

Print Media

Internet

Residents/

Staff

TOP

CTC

HP Digital

Villages

Surveys and

Focus Groups

Six Factors for Innovation

Dissemination:

Microenterprise

Development

Innovation

Characteristics

Intermediary

Organizations

Communications

Channels

Innovation

Champions

Policy and

Program

Supports

Applied

Research

Six Factors for Dissemination

Community Technology Intermediaries

Organizations that explicitly facilitate the adoption and use of new technologies for nonprofits

Innovation Champions

Key change agents who promote technology use within their communities/organizations and share it

Six Factors for Dissemination

Communications Channels

Strength and Density
Essential channels for sharing successful technology innovations

Applied Research

Research on the ways nonprofits and communities can benefit from technology

Six Factors for Dissemination

Programs and Policy Environment

The programmatic and policy supports necessary for creating and sharing technology innovations

Innovation Characteristics: Maturity, Complexity, Cost and Relevance

Length of time (availability); iterative refinement; existing support of labor pools for technical expertise

Agenda

Introduction
The Innovation Divide
Case Study: HP Microenterprise Acceleration Program
Factors for Innovation Dissemination
Recommendations

Recommendations

Develop new federal, state, philanthropic, and corporate programs aimed at dissemination
Create forums and intermediaries for facilitating the creating and sharing of innovations
Support efforts to promote broadband access for nonprofits

Recommendations

Create forums for learning about the adoption and use of new innovations from the private sector
Establish standards and mechanisms for data sharing and interoperability

Next Steps

Report to be released by the end of 2005
Qualitative research to better under the function/role/prevalence of each stakeholder
Quantitative survey of when and how tools are being used

BRIDGING THE INNOVATION DIVIDE:
An Agenda for Disseminating Technology Innovations in the Nonprofit Sector

Presented by:

Dr. Randal Pinkett, President and CEO

November 15, 2005

University of Illinois at Urbana-Champaign

Graduate School of Library and Information Science