business models

May 07, 2007

Price vs. Service in Assistive Technology

Dad_in_1986_for_web As the price of a product drops, and its market increases, the amount of service and support you can get on it goes down.

I first learned this important law from my late father. In the 1960s he ran a TV repair shop called TowerTV. He got out of the business in 1973 for personal reasons, but it turned out his market timing was excellent. TV repair quickly disappeared as chip technology made TVs more reliable. (This picture, believe it or not, was taken when my dad was 65. He passed away in 1999.)

And anyone who got into repair soon found that the same forces would work faster-and-faster as they moved up-market. Fact is it's now more expensive to repair a consumer video camera or PC than it is to just replace it.

That's what people do now. Lots of niches, like the one occupied by my friend Alex Randall back in the day, have virtually disappeared, and the biggest problem with the electronics industry today is its environmental impact -- pollution on the front-end, landfills on the back end.

Support, training, some help here? Fuhgetaboutit.


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April 11, 2007

What Will iCreate?

Handicappedlogo Singapore has decided to take the lead in assistive technology.

Its International Convention for Rehabilitation Engineering & Assistive Technology (i-Create) will be held at the Intercontinental Hotel in Singapore from April 24-26.

The conference is being held in conjunction with the 1st Tan Tock Seng Hospital, and will combine work on helping disabled work effectively with work on helping them become as able as possible.

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March 26, 2007

The Market Charity Model

Skoll_logo Most assistive technology is delivered with a charity model.

Governments and private entities, organized on a non-profit basis, unite to create solutions for clients.

This is not the only model for assistive technology.

What I would like to see more of is the market charity model. This is what the Skoll Foundation (right) promotes as social entrepreneurship.

This model first developed as dot-com millionaires and billionaires started setting up foundations to give away their money several years ago. The idea was that, instead of giving money to projects which would help people, they would give money to projects that would seek profits in helping people. In this way, they felt, their gifts would become self-sustaining.

Most of what we've seen at events like the recent SKOLL Forum and the CSUN Conference has been based on the charity model. While there is nothing wrong with such conferences, in creating solutions, I think they're all missing the ultimate point, which is self-sustainability and the market.

Social entrepreneurship, in other words, needs to accelerate.

It's possible many of the market charity foundations may also be missing the boat here. Instead of creating a single entity and sending that into the market, I think it would make sense to fund multiple entities, and to keep funding new entities as new ideas arise, in the same solution areas.

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