UPDATE Chat with Dr. John Fung

Uncle John (aka Dr. John Fung from Hong Kong Council of Social Services) came swung by Shanghai over the week and he managed to find time in his busy schedule to have dinner with me. At dinner, he told me about the progress that his organization had made with the social ISP project as well as the political battle that occurred over it.

When I was in Hong Kong, a month ago I was told that the social ISP project was embroiled in some political scandal. The Government Chief Information Officer who was handling the awarding of the contracts for the social ISP project abruptly resigned and then published a letter stating that “On several occasions before, during and after the evaluation of proposals, it was made clear to me that there was a political requirement to select a particular implementer.” (Read more about the scandal here)

Besides the political scandal, however, the social ISP project was doing great. Uncle John told me about the great prices on service and computers the social ISP was receiving. It all seemed like things were going according to plan and people were getting helped.

Chat with Dr. John Fung

Chat with Dr. John Fung

A money saving smartphone application, an Asia Pacific nonprofit umbrella organization and a nonprofit internet service provider in Hong Kong, were all topics covered in my conversation with Dr. Fung.

The world knows Dr. Fung as the head of the Hong Kong Council of Social Services, but to me he is uncle John, my father’s elementary school friend who graciously takes time out of his busy schedule to meet with me every time I am in Hong Kong. The Hong Kong Council of Social Services a nonprofit umbrella organization that represents X number of nonprofits operating in Hong Kong. The council works with both corporations and non profits. The last time I sat in Dr. Fung’s office, I heard of some fascinating social media projects that the council was working on. In my most recent visit, Dr. Fung seemed to have upped the ante, revealing an even more ambitious set of projects.

Dr. Fung shared three stories:

Combatting Inflation with Smartphone applications

In response to Hong Kong facing a wave of inflation, some estimate to be as high as ten percent, Dr. Fung has been in discussion with the Hong Kong Consumer Council to develop a smart phone application that would allow consumers to compare prices of groceries across stores. The application would pull publicly available pricing information from the websites of the supermarket chains, giving the consumer the most up to date grocery prices on their smartphone. Dr. Fung believed that this application has the potential to help struggling Hong Kong families fight rising grocery bills by allowing them to easily find the cheapest groceries.

When I heard about this application, I thought it was a great idea as well as I am all for money saving applications. After a little thought, however, I realized that the people who would be most hurt by inflation are the ones who could not afford a smart phone. The people who stand to benefit most from such an application are the ones need it the least. Perhaps such an application should best be developed by a private corporation as such an application has money making potential written all over it.

Techsoup, an Asia Pacific umbrella organization and a Global NGO Directory

A week after our meeting, Dr. Fung flew to California to attend a conference hosted by Techsoup. Starting as a nonprofit directory, Techsoup boomed in both size and scope when it found its niche by acting as a middleman between charitable corporations and needy nonprofits. Techsoup solves the last mile problem in philanthropy, by connecting corporate donors with organizations that can distribute the donations to those in need.

As one of the most successful partners in the Asia pacific region, the Hong Kong Council of Services was asked to create an Asia Pacific umbrella organization with their Australian counterpart, to better coordinate and distribute resources. It is exciting to see Hong Kong playing such a large role in the region.

Due to his expertise regarding NGOs in China, Dr. Fung has been enlisted in helping Techsoup accomplish its larger goal, the creation of a global NGO directory. However, the way I see it; this goal, while noble, is impossible in China where many NGOs are registered as corporations and many more are not registered at all due to the near impossible nature of getting nonprofit status. Any effort to document NGOs in China would be futile without a complete overhaul of existing Chinese regulations, an overhaul that would have to come from the very top of the government.

Founding a social ISP

The last story that Dr. Fung told me was the most exciting and dare I say feasible? It was also the first time I had heard of a social internet service provider, an idea that I could see being exported to other countries. The Hong Kong government and Hong Kong Council of Services were working together to create a social internet service provider that would serve the “problem” customers that other service providers had. These problem customers are the low income customers who often times would not pay their bills on time, forcing ISPs to defer to collection agencies, who use questionably ethical means of extracting payment. The use of a third party to collect payments, cuts into the already razor thin margins of the industry.

Enter the social ISP, backed by the Hong Kong government and council of social services. The goal of the social ISP is to take these problem customers off the hands of Hong Kong’s 200 ISPs. Renting fiber from the traditional ISPs at a discounted rate, the social ISP would deliver these savings to the problem customers. The competitive advantage of the social ISP would be its close connection with NGOs working in these disadvantaged communities. A trusted presence in these communities would theoretically allow the social ISP to have lower collection costs than its traditional counterparts; this is where the social ISP would earn its margin. In the end it is a win-win situation for the traditional ISP and its problem customers; the traditional ISP would gain a higher margin due to reduced customer service and collection costs, while the problem customer gains access cheaper internet from a more trusted source through the social ISP.

In order to boost the distance learning initiative of the Hong Kong government, the social ISP would sell low cost computers in addition to internet service. Combine this is with the government’s plan to issue cash vouchers for computers to the low income and a solid NGO network in the community, the social ISP could become the leading retailer of computers for the low income, providing another revenue stream. Affordable computers and internet access to those most in need of education could be the keys to the successful adoption of distance learning in Hong Kong.

There are of course still many devils in the details, such as how the social ISP is going to get these problem customers out of their existing contracts, but overall the idea of a social ISP sounds achievable. If this idea succeeds it will be quite the disruptive force in social services and telecommunications in Hong Kong.

Closing thoughts

Conversations with Dr. Fung are always an interesting mental exercise, because I dissect the many stories that he throws at me, trying to find holes in everything, but what I value the most about all these stories is how they reveal the many possibilities nonprofit work. With the projects that Dr. Fung has in store, I can surely say that the nonprofit world is just as exciting and challenging as the corporate one.

Marketing Binder Entry #2

Broadway Star Commercial
There was just too much to hate about this series of commercials commissioned by Hong Kong electronics retailer Broadway. I watched a lot of television while I was at my grandparent’s apartment and every time I saw this commercial, it made me want to gag and here is why.

The ad
Broadway has a series of commercials that build upon each other. The first ad in the series begins with a young rocker girl who reminisces about her old grade school rock band, wondering what happened to the band members. Suddenly, one by one the band members come to the rocker girl’s house and all of them have grown up in unexpected ways. One member has not aged at all and is still as young as her grade school picture, while another has become an old man. Yet another has turned into a rock, literally a boulder. The last band member to arrive has transformed from a Chinese boy to a Spanish heartthrob. The band is remade and together they play around with electronic gadgets and rock out. The ad ends with the message that living like a rockstar starts at Broadway and then sweetens the deal by offering limited Hello Kitty rock dolls with purchases.

The whole series of ads can be seen at http://www.broadway.com.hk/

My Reaction
All the commercials have the same tongue in cheek type of humor that just comes off as very corny and unfunny. The whole ad had an immature feel to it that I do not think would appeal to its audience. Broadway is pushing high end electronics such as 3D televisions and SLRs with television commercials that seem only to appeal to children.

The use of the rock and roll is puzzling since in Hong Kong, pop music has always been king. Children throughout the ages idolize and dream of becoming pop stars, so the use of rock and roll is a bit of a disconnect from the average Hong Kong resident. The rock and roll theme would have worked in a country such as the US with a developed rock culture but in Hong Kong it is simply out of place.

Lastly, using Hello Kitty as a selling point for high end electronics makes no sense. I cannot imagine that any consumer would include the prospect of a free Hello Kitty doll in their decision making process when buying a television or SLR.

Conclusion
Broadway’s rock star themed marketing campaign shows a complete disconnect with the Hong Kong electronics consumer.