Professional Documents
Culture Documents
An investigation by
Mikul Patel
BSc Business Information Technology
University of Portsmouth
Mikul Patel BSc Business Information Technology i
Abstract
Technology in the classroom is becoming an ever common sight around the world.
One organisation that aims to extend this further to developing regions is One
Laptop Per Child (OLPC). But rather than operating with the intention to make a
profit, OLPC distinctively runs as a non-profit with humanitarian motives; surrounded
by highly competitive and established technology companies.
The purpose of the research paper is to investigate the impact of the non-profit
model on OLPC’s accomplishments so far and whether it is the right approach for the
future. Focusing on the business aspect of OLPC, the paper studies some of the
many characteristics of the non-profit sector and important areas of management
applicable to non-profit organisations. Past news events related to OLPC are linked
with these findings in order to form points of discussion. Research survey found that
the user community feels neglected from the OLPC initiative and that they should be
better utilised to help support the non-profit approach.
The paper concludes that OLPC should still maintain their non-profit model as a way
of differentiating themselves within the laptop market and whilst they might not
consider themselves as having competition, better management is need to ensure
that future goals and new laptop models are to become a success.
“Now once people start looking at this, they say, ah, this is a laptop project. Well,
no, it's not a laptop project. It's an education project...I'm just going to get that
thing built, and it turns out it's not so hard. Because laptop economics are the
following: I say 50 percent here; it's more like 60, 60 percent of the cost of your
laptop is sales, marketing, distribution and profit. Now we have none of those, OK?
None of those figure into our cost. Because first of all, we sell it at cost, and the
governments distribute it”
After the stresses and many hours of dedication put in, I am pleased with what I
have produced and to be able to call it ‘my own work’ is a very satisfying one. This
dissertation would not have been possible without the help, support and advice given
from a variety of people.
First of all, I would like to thank my tutor, Penny Hart, for her valuable guidance over
the last few months. Her suggestion for me to present my research project at the
student research conference, held at the University of Portsmouth, gave me the added
confidence needed in the run up to the completion date. To all the forum respondents
of my questionnaire, I thank you for your useful insights into the OLPC initiative and
the findings were very interesting. I am also grateful towards Yioryos Asprobounitis
and Wayan Vota (forum admins at olpcnews.com) for supporting the research stage of
my project. Extra thanks also goes towards Sandy at forum.laptop.org, for taking the
time to review and critique my initial survey questions.
Last and not least, a special mention goes towards my housemates; Dudley, for his
lively house shaking dubstep music; Rachel, for always being in a happy mood; and
Michael, for the motivational words given throughout the year.
Mikul Patel
References ..................................................................................................... 53
Appendices ..................................................................................................... 62
Figures
Tables
Before an investigation of the project title can begin, it is important to provide some
background information based around the topic area. This chapter will also give a
summary of the aims and objectives of the research project along with a short
description on how and why research is to be carried out.
After decades of dominance in the computer market, the desktop PC was finally
overtaken, in terms of sales, by the notebook PC during the third quarter of 2008
(iSuppli Corporation, 2008). This strikes the question “is this the end of the desktop
PC?” (Soh, 2009) as the price point of notebook PCs continue to fall whilst still
offering the functionalities that consumers demand; the most convenient being able
to wirelessly compute with a lightweight device.
An issue linked with the increased availability of technology and information is that of
the global digital divide. Put simply, this is the area in between those countries that
have free access to technology and those who do not. As of 2009, 1.3 billion people
are thought to be actively online; equating to around 20 per cent of the global
population (Morley, 2009, p. 302). If further analysed, it would be clear that the
majority who do not have access to technology would come from third world
countries such as those in Africa, Asia and parts of the Americas. Many issues and
solutions to solving the digital divide have been debated (Barrett, 2007; Iacolare,
2007) such as empowering the people who can make use of new technologies whilst
at the same time improving the usability to accommodate the masses.
One organisation that was set up to tackle the digital divide in developing countries
is the One Laptop Per Child Association (OLPC). Formed in January 2005 and
headquartered in Massachusetts, USA, the organisation is fronted by computer
scientist and visionary Nicholas Negroponte. As well as being a former graduate from
the Massachusetts Institute of Technology (MIT), Negroponte also co-founded the
MIT Media Laboratory and has been an influential figure in the world of technology
with his ideas and beliefs (MIT Media Lab, n.d.). In his best selling book, he
predicted the influence that digital technologies may have in the future by describing
that “digital living will include less and less dependence on being in a specific space
at a specific time” (Negroponte, 1995, p. 165).
Building on from the principles expressed in his works, Negroponte finally unveiled a
prototype of a proposed $100 laptop with support of, then United Nations Secretary-
General, Kofi Annan. The device was aimed at aiding education for the world's
poorest children (United Nations, 2005). Eventually a final design was created and
became known as the XO-1 laptop. Mass production started in late 2007 with
working models being sent to those governments who placed early orders.
Figure 1.1 Negroponte with the XO-1 laptop at a UN briefing (Reuters, 2006)
Of the many potential areas for discussion, this research project will aim to
understand the non-profit business model adopted by OLPC, and its affect on the
success of the organisation; against those who operate on a for-profit basis. The
report intends to identify important characteristics of the non-profit model and cross
examine them with appropriate examples related to OLPC with thorough analysis.
Primary research will aimed towards those, who could be considered as being,
stakeholders to OLPC with the view to obtain their perceptions on the organisation.
1.3 Methodology
For the purpose of analysing data, questionnaires can allow for easy graphical
representations of quantitative data through the use of computer software. It is
expected that respondents to the questionnaire will be familiar with the format so
that would eliminate the doubt of filling in personal opinions. Also, it has been
acknowledged that questionnaires are considered as being less intrusive than face-
to-face interviews because there is no pressure to answer questions quickly. This
allows for good thought to be put into an answer; hopefully resulting in better
individual responses.
Most importantly, to reduce the likelihood of bias and the influence of results,
questionnaires have been identified as being a more appropriate method of collecting
primary data because there is not formal contact.
Due to the limited time scale of the project, the quality and scope of research could
be brought into question. Regarding secondary research, the fast paced nature of the
technology market may result in articles being outdated by the time the report has
been completed. New technologies or market progression may occur during the write
up phase and this report will aim to keep as up to date as possible (circa April 2010).
The level of secondary resources available to read from will be some what limited to
the University library and online journal database. With the questionnaires, as the
respondents are located in another geographical location, it may be difficult to
provide help if they are stuck on answering some questions. As a way around this, all
participants will be given the opportunity to communicate back via email.
This chapter will provide an understanding of the non-profit sector and its position
alongside the public and private sectors. The chapter will also outline the different
types of non-profits and the current state of the sector. As OLPC operates as a non-
profit organisation, their position within the non-profit sector will be examined.
Advancements in the laptop market will briefly be discussed.
In 2008, a report on the non-profit sector, released by the National Center for
Charitable Statistics (NCCS), found that approximately 1.4 million non-profit
organisations were registered with the US government Internal Revenue Service
(IRS); a increase of 27 per cent between the years 1995 and 2005 (Blackwood, Wing
& Pollack, 2008).
The non-profit (also known as the third) sector can be described as a place where
not-for-profit organisations are positioned alongside a collection of public service
activities and private foundations (McKinney & Howard, 1998, p. 76). In contrast,
Lyons (2001, p. 5) considers it as being a place where lies “those organizations that
are not part of the public or business sectors”. However, both authors come to the
agreement that organisations, which lie within this sector, are formed by groups of
people who act on a voluntary basis and do not consider profit making as being a
main objective. Other common characteristics may include the democratic style of
management and control over the organisational structure; similar to one you may
find within the private sector. The non-profit sector can be further sorted into a
variety of organisation types. Appendix C lists the 26 types of organisations which
are exempt from the federal income tax system in the US.
Hopkins (2005) identifies public charities as being either one of two types;
institutions and publicly supported charities (p. 48). Public institutions can come in a
variety of forms including religious organisations, educational establishments and
places of healthcare. Depending on the national budget received from sources such
as public taxes, governments contribute heavily to public services. Again in the US,
public charities are placed under the tax code 501(c)(3) (Internal Revenue Code of
1986) in order to be declare themselves as being tax exempt and entitled to receive
tax deductable gift donations.
The American Cancer Society (ACS) is an example of a public charity that, through
the charitable work carried out by its volunteers and donations received, are able to
offer a public service in the interest of the community.
Appendix C lists the other non-profit organisation types that would fall under NCCS’s
category ‘other exempt organisations’. These are not considered to make up a large
percentage of the total number of non-profit organisations in US; but they still are
able to contribute by providing a charitable service.
Using the NCCS guidelines, OLPC would be placed under the category ‘other exempt
organisations’ because they do not meet the criteria’s of being public charity in
providing a service and receiving funding from government sources; and in being a
private foundation, with no single finance source funding the project.
Therefore, it should be simple to establish under which tax bracket (see Appendix C)
the OLPC organisation belongs to. However, due to the structure of the company,
assigning one tax bracket to represent the whole organisation is not as clear-cut.
Tax Bracket
501(c)3 501(c)4
(US)
For OLPC, the ‘foundation’ arm is eligible to receive tax-deductible gifts and still
pursue the educational, research and other activities that would make it qualified to
be a 501(c)3 organisation. Alternatively, the ‘association’ arm would be free from
political lobbying restrictions and be able to raise funds through a mixture of sources
(chapter three briefly highlights some of the funding sources used by OLPC).
Within an economy, the non-profit sector does not operate separately and instead is
situated in between two other sectors: the public (government) and the private (for-
profit) sectors. It is important to understand the differences between these two
sectors as whilst they still produce a final produce/service, their motivations and
goals can vary significantly.
Despite not aiming to make a profit, a public organisation could still operate in a way
similar to that of a private organisation. Business costs should be covered for and if
they were not managed effectively, the result could be an increase in funding
required from the government; which in turn could lead to either cuts in other public
services or an increase in public taxes. An example of a large-scaled public
organisation, in the UK, would be the British Broadcasting Corporation (BBC). The
BBC could be classified as being a public organisation acting in a private way; public
as in receiving its primary funding from the public TV license fee, and private as in
renting studio space out to other broadcasting companies or commercialising through
its global subsidiary; BBC Worldwide Limited.
a c
First Sector
(for-profit)
Figure 2.2 The three sectors and hybrid segments of the economy (Gunn, 2004, p. 5)
The introduction of the XO laptop could be considered to have been the catalyst
behind some changes within the laptop market; most notably in the resurgence of
the netbook (not to be confused with the notebook) sector. This sector has grown
significantly in recent years; “14 million units in 2008, and with shipments continuing
to rise, the scale will reach 25-30 million units in 2009, and 40-45 million units in
2010” according to Scott Lin, president of major computer manufacturer Acer Taiwan
(Wang, 2009). As computer blogger Vaughan-Nichols (2009) puts it; a netbook
should be “small, cheap, or able to access a network”, pinpointing the creation of the
XO laptop as the start of the current netbook boom.
Table 2. Netbook shipment volume and market share by brand in 2008 (Q3)
Being a non-profit, OLPC may have had to rely on their innovative designs as a way
of differentiating themselves within the mixed market. However, the question over if
“too much innovation” is bad for OLPC, is brought up by Felten (2007). Here, it is
considered that the likelihood of would-be innovations to fail is high. In the long run,
more established companies enter the same space; often producing the same
product but in a more expert and advanced way. For OLPC, this has already
happened with the release of netbooks by experienced manufacturers such as Acer,
Asus and HP (as shown in table 2). Therefore, a convergence of non-profit and for-
profit organisations could be said to have happened within the netbook market.
Having established OLPC’s position within the non-profit sector, this chapter will aim
to highlight the important aspects of non-profit management and how it has been
used in the context of OLPC. Effective management can cover a wide range of areas
from strategic planning to financing and marketing.
In a non-profit organisation, the role the leader takes has to “fit in terms of the
mission of the institution and its values” (Drucker, 1990, p. 13). For Negroponte, he
was able to take this idea further when he fully committed himself to the OLPC
project after it was announced he had stepped down as MIT media lab chairman
(MIT, 2006). Speaking at the Emerging Technologies Conference, Negroponte (2005)
reiterated his desire and passion for the project by calling it the “most important
thing I've ever done in my life”. In the same speech, he later clarified the intention
to focus on education by describing the project as being “education project, not a
laptop project”. Even at this early stage, Negroponte showed the strengths and
attributes of a leader with his clear and precise goals for the project. In essence, he
wanted to improve education and use it as a platform to solve the problems in the
world; be it global poverty, the environment etc. Whilst it can be viewed that things
such as leadership traits or characteristics do not exist (Drucker, 1990), Negroponte
was able to draw upon many years of experience researching and publishing his
views on digital technologies along with the contacts he had established. Rather than
centring the organisation around himself, Negroponte talked about the venture being
a collective project that would draw upon the strengths of its employees and
partners; all with the expertise needed to drive the organisation’s initiatives forward.
Whilst they might not get recognised publicly, the supporting role of the governing
board is worth consideration when it comes to making organisation-wide decisions.
Governing boards can often be seen as being all powerful when it comes to setting
overall strategies and decisions. However, Hudson (1995) points out that, more often
than so, boards are “highly dependant on the staff not only for information and
advice but for preparing strategies and plans” (p. 40). For OLPC, this may be the
case as operating on a global scale could be hard to manage. Language differences
in participating countries could cause barriers of communication. Therefore, local
voluntary staff would play an important part in passing on feedback about
A governing board would not be formed overnight and, just like with the life cycle of
a product, a board needs time to mature until it reaches a stage where its members
are adding significant value to the organisation. Hudson (1995, p. 43) does mention
that the life cycle would vary for each individual organisation, however the pattern is
universal enough to help create a visualisation of this idea (see figure 3.1).
Figure 3.1 Board behaviour moves forwards and backwards (Hudson, 1995, p. 45)
Here, Hudson (1995) describes the tendency for boards to constantly change their
structure, either in a forwards or backwards movement. Within the ‘founding’ phase,
the introduction of new board members, at staggered intervals, can cause certain
members to resist change as their influence in decisions may become less important.
Moving onto the ‘youthful’ stage, as a management team begins to form under the
chief executive, the movement of responsibility may move down as the board takes
a “back seat” (p. 44). A reassessment of the board may occur as discussions become
lethargic and faith in the board is lost. The transition to the ‘adult’ phase may take
longer to establish as its realised that more professionally skilled board members are
needed. Original board members may decide to leave as relationships and business
approaches conflict. The new board members risk “losing the mission that inspired
the organization in the first place” (p. 45). Eventually moving onto the ‘mature’
phase, the board may adopt a relaxed role as new members, who may be experts in
their own field, are appointed to the board. However, there is no guarantee that they
will be fully involved within the organisation; often leading to past crises reoccurring
such as resistance to change and resignations. The life cycle is viewed to be a
continuous circle of events until the organisation eventually no longer exists.
Other prominent figures, who decided to leave the project after being involved since
the beginning, included former president of software, Walter Bender, who was
believed to have issues over the proposed movement away from “open-source
software in favor of Windows XP” (Paul, 2008c). Linked with Hudson’s (1995) belief
that some original board members will resign in the ‘adult’ phase when structural
change is introduced, OLPC also saw the resignation of Ivan Krsti, the former
director of security architecture, after Negroponte proposed the search for a CEO so
that the organisation could “operate more like Microsoft” (Paul, 2008b). In his blog,
Krsti (2008) comments on how he “cannot subscribe to the organization’s new aims
or structure in good faith, nor can I reconcile them with my personal ethic”. Possibly
the most significant loss for OLPC happened with the resignation of its founding chief
information officer, Mary Lou Jepsen, as she pursued the idea to “commercialize
technology she invented with OLPC” (Shah, 2007b), and thus forming, for-profit
company, Pixel Qi (www.pixelqi.com).
So whilst the organisation has been able to rapidly grown in size over the space of a
few years, the movement of people away from the board could imply that the
organisation is now placed back into a youthful stage. Recent job cuts throughout the
organisation (Musil, 2009), suggests a restructuring initiative is required to direct the
organisation back into the right direction rather than digressing away from the
original missions and values. Again linking back to Hudson (1995), a main attribute
of being in the youthful stage is that the organisation starts to outgrow the
capabilities of its leader (p. 44). Negroponte, himself, was quoted as saying he was
not a true CEO with “management, administration, and details” being his weaknesses
(Hamm, 2008). Therefore, a question could be raised about his leadership style not
being suited to managing, what is essentially, a technology organisation; in contrast
For OLPC, a willingness to frequently change their mission statement, despite only
being in existence for a short time, has come under much criticism; much so by Vota
(2010). Here, he counts that the mission has subtly changed four times (or possibly
even more). Vota also mentions that on the official OLPC website, different versions
of the mission statement seem to appear; specifically on the ‘mission’ and ‘vision’
pages. From research, it is hard to find a single unified mission statement from
OLPC. It raises the question does a single mission actually exist? Or do OLPC operate
on many smaller missions; each targeted to different areas such as education or
technology?
The role of setting a strategy should be used not only to show what an organisation
proposes to do, “but also what it decides not to do” (Kaplan & Nolan, 2001, p. 133).
Therefore, it could be seen that a non-profit organisation may have the tendency to
create many initiatives during its launch stage; whilst at the same time forgetting to
focus on the philanthropic goals they want to achieve. Over time, the following issues
should be considered when strategically planning in a non-profit environment:
Not being funder lead – Organisations take up projects only because the
external funding is available. These may cause organisations to deviate away
from what they want to focus on. Funding can be hard to come across for any
non-profit organisation so there may be no alternative than to take the offer.
Being more than a collection of projects – A shift from being core funded to
proposing to take on projects. These projects may have the tendency to
operate separately from each other and may result in creating divisions from
within.
Gaining a longer-term vision – Visions may tend to become short term. What
were once long term structures and policies now rarely last a few years as
management seek new ways to differentiate themselves; possibly as a way of
responding to competition in the sector.
Future sustainability – Having a clear strategic plan can help to build longer
term plans rather than focusing on solving the short term issues. A focus on
creating a lasting change should be considered as being important.
Currently, OLPC appears to be split into a variety of projects ranging from its official
field volunteer program (OLPCorps) to engaging young students and adults in its
OLPC Interns program. Also, as more countries sign up with interest in the project,
the creation of country operated foundations appears to have emerged; still
maintaining OLPC’s values and goals to deploy laptops into local schools. Although
they do not seem to be officially endorsed by OLPC, these small local deployment
efforts are run by groups of volunteers; thereby still following the characteristics of
non-profit projects. Appendix D lists these known locations, using data as of August
2009. However, there could be a possible risk from having many small deployment
programs running in succession. As the global expansion of deployment continues,
OLPC may find themselves in the position where it becomes difficult to keep track of
how and where programs are being run. Vota (2007) speculates “how many
countries are really participating in One Laptop Per Child? Do you know? Does
Nicholas Negroponte know?”. Whilst the definition of ‘participation’ can be vague,
independent projects in countries like Austria (www.olpcaustria.org) do not seem to
be fully recognised on the official OLPC deployment page.
Figure 3.2 OLPCorps students with teachers at Kicukiro Primary (Stein, 2009)
However, as this program still continues to exist and expand in size (Marketwire,
2010), a feeling of hypocrisy could be felt especially when other OLPC programs such
as ‘Give 1 Get 1’ (G1G1) and ‘Change the World’ have been dropped; citing problems
such as a “drop-off in interest” and creating “very little” yield (Shah, 2009). Shah
also reports on yet another change in approach by OLPC; a movement away from
small-scale deployments back to a large-scaled effort. So before risking turning into
a non-profit with a collection of projects, an issue as already identified by Lawrie
(2007), OLPC appears to have focused on a direction for the future by scaling down.
When economic factors come into play, most notably with the current global
recession, a clear strategy could help to conserve the limited funds that a non-profit
organisation, like OLPC, would operate on.
In essence, OLPC experienced the basic business tradition of supply and demand.
They underestimated the reality that having tried and tested software was an
important criterion for governments. A competitor knew this and was able to supply
their product meeting the demands of the market. Although OLPC reacted quickly,
damage may have been already caused against their ethical goals because of the u-
turn made from their original stance against using commercialised software on its
XO-1 laptops.
3.4 Summary
As highlighted earlier in the chapter, Lawrie (2007) identified some strategic issues
that non-profit organisations should consider when planning for the future. For OLPC,
it could be viewed that they could fall under some of these issues; or at least start to
sway towards them. Currently, as OLPC seek to compete against competitors in the
market, there could be a tendency to take on large-scaled projects only because the
opportunity is available; as seen most recently with the agreement between OLPC
and the East African Community (EAC) to deliver “30 million laptops to the region by
2015” (Fildes, 2010). When considered that OLPC have had difficulties in being able
to create large bulk orders, and have yet to experience the levels of manufacturing
to justify being able to manufacture and deliver 30 million laptops, it could be
considered that OLPC are taking on a big risk; even more so than Lawrie would want
from non-profit organisations.
Lawrie (2007) also identifies the likelihood of the organisation culture resisting on
change. As OLPC have experienced, this has resulted in a loss in some of their
influential board members who have gone off to pursue their own humanitarian
efforts. So, whilst it may be considered as being bad for OLPC’s management, it
could be said that there is also a positive effect from the departure of these board
figures. Pixel Qi, set up by Mary Lou Jepsen, still maintain their charitable motives by
To sum up, OLPC faces many challenges in terms of the management of the
organisation. The key aspect to managing the organisation lies within the strength of
having a well-defined mission statement. This should allow OLPC to set out their
long-term visions and their approach to maintaining future sustainability; considered
as being important issues to think about by Lawrie (2007).
As briefly mentioned in chapter three, the relationship between Intel and OLPC broke
down over Intel’s development of an alternative educational laptop; the Classmate
PC. Essentially, both projects are similar; the major difference being that Intel uses a
for-profit approach in marketing and selling their product. This chapter will briefly
examine the market approach used by Intel and how they have been able to
differentiate themselves in the very competitive netbook market.
Originally unveiled as the Eduwise laptop in 2006, Intel’s entrance into the low-cost
laptop market was seen as being a major threat to OLPC’s $100 laptop project; with
Intel CEO, Paul Otellini, quoted as saying “nobody wants to cross the digital divide
using yesterday's technology” (Ricker, 2006). Powered by computer technology from
Intel themselves, Intel took a traditional chip manufacturer approach of only creating
a reference design for a laptop. As a result, Classmate PC’s are manufactured by
global original equipment manufacturers (OEM’s); each creating their own branded
version of the Classmate PC to distribute locally.
The Classmate PC, whilst mainly targeted to governments, can also be brought by
individuals directly from suppliers who manufacture and stock versions of the laptop.
Figure 4.1 Original ‘clamshell’ design of the Classmate PC (Intel Corp, 2007)
Through their OEM partners, Intel has seen a variety of modified designs when
compared to the original reference design of the Classmate PC. Some of these OEM
branded Classmate laptops are as listed below:
Some of the most significant design changes have come from the help of American
PC manufacturer, CTL. In early 2008, a 2nd generation version of the Classmate PC
was officially presented at Intel's Developer Forum, with the interesting
announcement that it would be freely available for purchase on consumer sites like
Amazon; initially with a price tag of $400 (Malik, 2008).
During late 2008, another fundamental change to the Intel reference design was
leaked by CTL and Intel; sporting a tablet-like design through the novelty of having a
convertible screen, similar to that on the XO laptop (Stern, 2008).
More recently, Intel have updated their Classmate convertible reference design with
a focus on improving hardware specifications and incorporating slight cosmetic
changes.
(4)
(4) allocates out to
Local Schools
In addition, governments may also involve the assistance of local education service
providers and system integrators before Classmate PC’s can be used by students in
schools. Intel’s distribution model is likely to vary for each country; factors such as
the level of government expenditure on education will impact on the reach of
Classmate PC’s. Taking India for example, Intel had signed an agreement with three
local PC vendors (HCL Infosystems, Wipro, and Zenith Computers). However, it
became apparent that the price point of Classmate PC’s would not be cost effective
for government-run schools, therefore prompting “Intel to target the device in the
first phase at private schools” (Ribeiro, 2007).
Just from this basic example, it can be easy to see how successfully aligning the
distribution process can be a complex task. However, being an experienced global
company with many years of success, Intel has identified the best route to get a
product to the market. Because of this, it appears that Intel-powered Classmate PC’s
can be produced and delivered to the market in quick time; as what was expected
when the Portuguese government ordered 500,000 Classmate PC’s with the view to
implement them into schools for the “upcoming school year” (Dignan, 2008).
Other than just marketing their Classmate PC’s as being an alternative to aiding the
education of children, Intel have a clear focus on promoting, what they call, 1:1 e-
learning. From a promotional leaflet, for Classmate PC’s, Intel states the following:
learning experience for kids. And they give teachers new tools to
It is not just students who are viewed as benefiting from using Classmate PC’s.
Intel also stresses the empowerment for teachers, who can enhance their own
teaching experience. The software content of Classmate PC’s are marketed as
allowing “teachers to be more responsive to the moment-by-moment needs of
their students” (Intel Corp, 2010, p. 2). More surprisingly by Intel, they choose
not to brand Classmate PC’s with their corporate logo, a move that prompts IT
reviewer Lemon (2007) to observe that “corporate logos and marketing don't
belong inside schools”.
The pricing policy used by Intel makes it difficult to put a real value of return when
purchases are made by government and individuals. Greenemeier (2009) speculates
that a basic Classmate PC costs about $300 to make, but this does not include
software, installation and ongoing support. It is also important to remember that the
contracted local manufacturer sets the final price for consumers and that Intel makes
the majority of their income (and profit) from creating the processors. For Intel Atom
processors, expected to be placed in new Classmate PC models, it has been
speculated that Intel can expect very profitable yields of 90 per cent; a single
processor is rumoured to cost $6-$8, to be sold onto system vendors at roughly $40
(Valich, 2008).
Further development on Atom processor technology, most notably the N450 model,
can be expected to “significant manufacturing efficiencies as well”; through
integrating graphics into the processor, thus potentially reducing the overall unit cost
of a Classmate PC because of one less component, but still providing Intel with a
greater profit margin when compared to older Atom processors (Hobbes, 2009).
The approach used by Intel is a simple one; they have identified their core
competency in producing high quality computer processors and combined that with
the vision of being able to power devices for use in enhancing learning. Being an
established computer organisation, the for-profit approach used by Intel seems to
have helped towards the good response in sales; two million Classmate PC’s are
reportedly in use around the globe, with many more on order. This could be down to
the hierarchical structure an organisation like Intel would have; with an important
emphasis on meeting targets and objectives on a constant basis.
More interestingly, Intel’s Classmate PC project is not just a full for-profit venture.
Intel also support community schemes in developing countries such as by providing
a shared community Classmate laptop for those schools are cannot afford a full-
scaled implementation at the present time; possibly with the view to secure
relationships for the possible future order of laptops.
This chapter will detail the methodology used to design the questionnaire along with
reasoning behind the questions asked. Results obtained from the primary research
will also be displayed. In addition to the statistical data, a general overview of
responses will be further looked into.
5.1 Methodology
The questionnaire was available as an internet link by making use of the online
application available on surveygizmo.com. Internet forums were identified as a
suitable means of communication in order to increase global coverage of the
questionnaire. Rather than randomly placing the questionnaire link on various sites,
targeted forums were identified on olpcnews.com and laptop.org.
There was no limit concerning sample sizes because it was hard to tell how many
people were going to see and click on the questionnaire link. The questionnaire was
made available online for a period of 3 months to allow for enough time for analysis.
Table 3 looks at each proposed survey question and gives a brief explanation as to
why the question is being asked, and for what type of information will be collected;
quantitative or qualitative?
1. Which of the following applies to quantitative To find out whether the participants own
you? an XO laptop themselves or have
experience using one
2. How did you get your XO laptop? quantitative To see how people got their XO laptop.
Also looking to find any alternative
sources of obtaining XO laptops
3. For what purpose do you use your quantitative Why forum members have an XO laptop
XO laptop? and what further purpose is it used for
4. How would you rate your experience quantitative To find out how they perceive their
of using the XO laptop? experience of using the laptop
4(b). Briefly state why you think this qualitative To expand on question 4
5. What year did you become aware of quantitative Are forum members the ‘early adopters’
the OLPC initiative? or ‘laggards’ of OLPC
6. How would you rate the level of quantitative Find out whether OLPC has achieved a
media coverage that OLPC has good level of media attention. Could be
received? linked with its perceived success (Q.6)
7. How would you rank the following quantitative To find out what is considered as being
media as being key to advertising the the most appropriate method for OLPC
OLPC initiative? to advertise the laptop and goals
8. How would you rate the success of quantitative Whether the XO could be considered as
the XO laptop since its release? being a successful product or not
8(b). Briefly state why you think this qualitative To expand on question 8
9. Could the XO laptop compete quantitative Would it be viable for the XO to
commercially against current netbooks crossover to a commercial market but
on the market? still maintain their non-profit status
9(b). Briefly state why you think this qualitative To expand on question 9
10. What should be considered as quantitative As OLPC incorporates both business and
most important to supporting the OLPC technical elements, which should be
initiative? considered as needing more focus
11. Do you agree with the idea that quantitative Would a for-profit approach benefit the
OLPC should act more like a for-profit management and organisation of OLPC
business in order to boost and provide a better platform for the XO
sales/success? laptop to succeed
11(b). Briefly state why you think this qualitative To expand on question 11
12. (From a business perspective) If qualitative To allow for future recommendations to
you had to change anything about the be made. The idea is get general
OLPC initiative, what would it be and business proposals rather than on the
how would it change the organisation’s technical side e.g. upgrading the
performance? hardware/software of the XO laptop
This questionnaire was created using the ‘Free’ package plan. This was because the
level of respondents per month was not expected to exceed 250. Also, the extra
functionalities on offer such as ‘File Upload Space’ or ‘Email Invitations’ were not
required for this research project.
The initial response level to the questionnaire was slow-paced. However, thanks to
being given permission to post on the front page of the independently run site
olpcnews.com (see figure 5.3), by editor Wayan Vota, the number of responses
increased rapidly.
Of the two targeted forums that links to the questionnaire were posted;
olpcnews.com and forum.laptop.org, those from olpcnews.com made up 72 per cent
of the total respondents.
Male – 86%
Female – 14%
The results in figure 5.4 show that the OLPC forum users were highly likely to own an
XO laptop equating to 66 out of 70 people. Of the four who do not personally own
one, they had previous experience of using the laptop.
Other 12%
The Give 1 Get 1 program (as briefly discussed in chapter three), came out on top as
the most popular of obtaining an XO laptop at 84 per cent (57 people). For people
who selected the ‘other’ option, other methods of XO ownership included it being
given as a donation, through a development program, loan from employer (Google).
As an educational aid 7%
Travel laptop 3%
Other 50%
XO laptop owners were found to have varied uses for their laptop. Of all the
responses, a quarter of the XO owners (16 people) only used the laptop as a
novelty item closely followed by 11 people who saw it as a testing machine.
Initially not part of the selection of answers, a common response under ‘Other’
saw the laptop being used a travel laptop/netbook. Using the laptop an eBook
reader and as a self learning device were other common answers. Rather than
using the laptop for one purpose, it was evident that the XO laptop was a very
useful tool for multi-taking functions. Combinations such as being able to use it a
portal device to surf the internet, check emails and carry out basic networking
abilities seemed to be in keeping with OLPC’s target to produce a multi-functional
laptop that is versatile and rugged for everyday use.
Excellent 9%
Satisfied 41%
The general response saw that 41 per cent (29 people) found their experience of
using the XO laptop as being a satisfying one. The same amount of people also found
the experience as being either ‘very good’ or ‘excellent’.
Question 5: What year did you become aware of the OLPC initiative?
26%
Figure 5.8 The year which knowledge of the OLPC project occurred
OLPC formed in 2005, and the results in figure 5.8 show that the forum users
knew about the project from an early stage. 33 people (60 per cent) were early
observers of the project during either 2005 or 2006. 26 people (39 per cent)
became aware in the year 2007; a time when OLPC became more mainstream.
However, as seen in the graph, there was a big drop-off in people becoming
aware of the project for the years 2008 and beyond. This could be partly due to
forum users being the early adopters of new technologies and as is to why the
initial G1G1 program was a success; in contrast to the 90 per cent drop-off for
the 2008 program, as explained earlier in chapter three.
No media coverage 2%
It was found that respondents perceived OLPC’s media coverage to be generally good.
When combined, 65 per cent (46 people) found OLPC to have moderate or a lot of
media coverage. 35 per cent (24 people) believed that OLPC had little to no coverage.
Question 7: How would you rank the following media as being key to advertising the
OLPC initiative?
When asked to rank common media outlets (see table 4), respondents placed blogs,
forums and newspapers/magazines amongst being the most important methods of
reporting and showcasing the OLPC project. Old traditional media such as television,
radio and white papers were considered as being less important.
Very successful 9%
Successful 77%
The general view found that OLPC’s XO laptop has had a ‘successful’ impact since its
release, with 77 per cent (54 people) thinking this. Nearly double the amount of people
found the laptop’s release to be ‘not successful’ when compared to ‘very successful’.
Yes 23%
No 54%
Undecided 23%
Over half the respondents (38 people) considered OLPC as not being capable of
commercially competing in the netbook market. The same amount of people (16
each) were either undecided or thought OLPC could be competitive in the market.
Between the business and technical sides of OLPC, including the XO laptop, 71
per cent of respondents (50 people) found that both have equal importance to
supporting the initiative. For those who did not select both, 20 per cent found the
‘business goals and objectives’ to be more important when compared to the
‘technical specification for the XO laptop’ (9 per cent).
Question 11: Do you agree with the idea that OLPC should act more like a for-profit
business in order to boost sales/success?
Yes 36%
No 40%
Undecided 24%
Question 12: (From a business perspective) If you had to change anything about
the OLPC initiative, what would it be and how would it change the organisation’s
performance?
One of the most common suggestions was to make XO laptop commercially available
in retail stores; allowing for any profits to be routed back to the project. Some
expressed their concerns over the bulk purchasing requirement and think it should
be removed to prevent putting off prospective governments from making initial
testing purchases. Rather than relying on one product, further proposed ideas
include the production of many lines of laptop; each targeted towards a specific
audience.
As was expected, the forum users who responded to the questionnaire were very
knowledgeable and they gave very useful views regarding the OLPC initiative.
Despite not being compulsory, all the open-ended questions provided some
detailed reasoning’s for their choice of answers (see Appendix F).
It was evident that the respondents were mostly technically oriented in relation to
the XO laptop, but they were able to give recommendations for how OLPC’s non-
profit approach to this project could be improved. This included the return of
previous funding programs like G1G1 and the need for OLPC to go back to their
original open-source roots and to not become commercialised by being dictated
by industry-norm standards. This would help to ensure that OLPC remains a
unique project and that it could continue for future years ahead.
Now that all research has been gathered, this chapter will aim to find any similarities
or differences between the primary and secondary sources. The chapter has been
split into sub-sections, each highlighting the important areas of discussion which
have been brought up and are relevant to the research question. Most responses
were directed towards the G1G1 program hence why this is positioned first in the
chapter. Appendix F contains all the responses from the qualitative questions from
the online questionnaire (Appendix E).
Whilst being one of the most popular sources for an adult to obtain an XO laptop,
and at the same time supporting the OLPC initiative by having an XO laptop donated
to a child in a developing country, the G1G1 program was dropped following two
very contrasting years of operation. An estimated 90 per cent decrease in purchases,
from $35 million (2007 program) to a disappointing $3.5 million (2008 program),
was seen. Negroponte conceded that this was not good enough and was quickly
quoted to place the blame “in keeping with the economic times” (Shah, 2009).
However, what we fail to hear more of, from OLPC, is of how the G1G1 program was
managed during the two years. After the relative success of the first year’s program,
it could be considered that OLPC were too eager to expand the program after just
one year of operation. Buderi (2009) mentions the two/three-fold increase in G1G1’s
advertising and marketing costs; coming “close to $20 million”, as being a good
reason for OLPC’s operating budget taking a “huge blow”. There also seems to be
less clarity over the deployment of G1G1 laptops in developing countries; leading to
one response from the survey questioning why “we never hear about the laptops
that have been deployed through the G1G1 campaign” (56578799). Another
suggests OLPC should have been “more open…in order to get the public and
governments excited and set expectations” (57642571). If this was the case, then
OLPC may not have needed to quickly develop a new strategy in order to “make the
project sustainable”; after the expected bulk orders from governments were not
being fulfilled (Paul, 2009).
It was also found that, if given the chance, the community would be willing to
support and technically develop towards future models of the XO laptop. One
response calls for giving “skilled people a chance to hack/develop on the XO. To
learn about it first hand. To blog about it” (56849838). For a non-profit organisation,
this type of publicity and support could be seen as being invaluable in spreading the
mission, rather than using up resources on advertising campaigns; which may have
largely contributed to the reported “$1 million a month” in operating costs (Buderi,
2009). Linked to table 4, it was found that the ‘television’ and ‘public displays’ were
ranked lower in importance for advertising the OLPC initiative. The blog approach
suggested by respondent 56849838 would seem to be a more appropriate
advertising method considering it was also ranked as being the most valuable
advertising source, closely followed by internet forums.
Another outlook on the G1G1 program found the view that too many people “did not
understand that the XO was a purpose built machine and thus were disappointed…
This damaged the XO brand by creating a meme that the XO-1 was under powered
and not a real computer” (56849838). This type of thought may have been a reason
behind such incidences with the XO laptop where people were “excited to look at it.
Within a couple minutes they are cursing and within 10 minutes they hand it back to
me happy to never look at one again” (61654536). This brings up the question
whether the G1G1 program, at first, should have been targeted to a select group of
technical specialists rather than to the masses. This may have resulted in better
constructive feedback on the technical side of the XO laptop and on OLPC as an
organisation; covering areas such as how to deploy laptops and market educational
products to prospective governments.
Research found that the general view that G1G1 should become a permanent
program. Although, OLPC should learn from the past difficulties they encountered in
its 2007 and 2008 programs; with one person describing the “shipping issue for the
original G1G1 was a pain” (56071275). The decision to leave delivery logistics to
Amazon.com, during its 2008 program, was a welcomed one and warranted such
survey responses asking to use “Amazon.com right away for G1G1 program” but at
the same time putting in a “reliable supply chain in place to quickly satisfy demand”
(56664641); more to prevent past instances, such as when the delivery of XO
laptops to the donors were delayed because of “high demand” and “production
delays” (Paul, 2008a), from repeating again.
Looking back at figure 2.2, OLPC would be placed under the organisation type
‘Nonprofit Organization’. OLPC would therefore heavily operate on the basis of
funding from external sources and additional programs (as seen with the G1G1
program). However, that is not to say this is an easy process to manage especially
with the negotiation processes a firm like OLPC would have to undertake in order to
secure funding and bulk government orders for its XO laptops.
More damaging for OLPC, was how this change in direction may have contributed to
some of the losses in its board members (as briefly discussed in chapter three) and
“the reason that Sugar Labs became it's own entity” (55019597). Rather than being
concerned about the wishes of adults in higher government positions, and becoming
yet another standardised laptop product, OLPC should be challenged to go back to
their open source roots and “keep carving out a niche as an educational device for
kids” (56679611). This may help to bring back the uniqueness of the project and
attract greater attention from those wanting to move away from the current
standardised products found in the market.
Operating as a non-profit, it would appear that OLPC have difficulty providing the
resources in order to offer after support once laptops are deployed. Placing the
responsibility with the school, or intern deployment volunteers, may affect the
quality of learning for a child. As one response from the survey puts it, “agendas are
no substitute for quality, and OLPC seemed to be far more motivated by deluded
agendas than by any fundamental commitment to quality” (57171025).
To overcome these shortcomings and focusing issues, one survey response proposes
the possibility of splitting the organisation up (further than what it is currently like;
as displayed in table 1) where “one group should deal with tech, one group should
deal with distribution, one group should deal with for-profit sales” (56617305).
However, this approach would require a high level of communication and, with OLPC
being a non-profit, it may be viewed that there are no clear communication
procedures in place; “from what I read on olpc there is also a lack of communication
between the grassroot and the HQ” (56617305). This would not be expected from a
for-profit project such as Intel’s Classmate PC; where careful coordination between
OEM’s, ODM’s and ISV’s is crucial to ensuring the correct implementation process
and delivery of laptops to the customer; be it whether an individual purchaser or
whole school department. OLPC were not able to offer this level of efficiency for its
G1G1 program; when they had “to prioritize delivery of laptops to developing
countries, which left many donors waiting” (Paul, 2008a).
As Vaughan-Nichols (2009) has already hypothesised the idea that OLPC kick started
the netbook market; a common view shared by responses in the survey such as
“olpc single-handedly created the netbook market” (55911245) and “it helped to
start the netbook category of laptops” (56585524), the XO laptop now faces
competition in the different markets they operate in. For the educational market,
alternative products in the market include the Classmate PC (see chapter three) and,
whilst not technically classed a portable device like a laptop, an advanced desktop
Whilst OLPC may not be focused on targeting this area, within the commercial
sector, the rise in competition from established computer manufacturers such as
Acer and Asus may be doing harm for OLPC in reaching their goals. These companies
operate, again, in a for-profit way and are able to achieve the economies of scale to
compete on price and manufacturing costs. Because of this, over 50 per cent of
respondents in the survey believed that the XO laptop could not compete
commercially against current netbooks in the market (figure 5.11).
For those who did not believe the XO laptop could compete commercially, and in a
for-profit way, it was clear that the “XO laptop is for children to learn better” and
Whilst not technically a way to increase funding, creating more alliances with non
government organisations (NGO) could be a useful way for “OLPC in deploying more
laptops effectively” (57746128). Here the idea is to create more pilot schemes in
developed countries; leading to greater attention and additional funding to help
support the mission in developing regions. As figure 5.9 shows, the level of perceived
media coverage achieved by OLPC varied from little to moderate; with one person
commenting that “where I live (Québec, Canada), hardly anybody has heard of the
XO” and that “were it just for the mass media in my province, I would no close to
zilch about the XO” (57013417). So the issue here is the need for OLPC to openly
penetrate the developed world and get the benefits of using the XO laptop across
more clearly; rather than relying on internet sources to market and update on the
progress made from the OLPC initiative.
For OLPC to continue as non-profit organisation, the general consensus is that OLPC
should change the current way in which it is organised and managed; otherwise they
could risk losing potential orders to more established names in the market such as
Intel and NComputing. Beckford (2008) argues the case that OLPC would operate
better as a for-profit as benefits can be achieved from having a “vibrant ecosystem”;
where those entities that make up the background of OLPC could work together in
being more innovative and the “amount of investment by all involved would increase
far more significantly as sales grow”. These firms, behind the scenes, are already
operating as for-profit companies and therefore are looking to achieve levels of
efficiency to remain competitive in the market. The “competitive environment” is also
seen by Beckford as a way of remaining innovative as “competition is the essence of
what makes products and companies successful”. However, as already questioned by
one response from the survey, it is “skeptical that profit and openness can coexist”
(57853810), OLPC would have to decide whether they can maintain their original
open source motives and, at the same time, cater towards the requirements made
by governments and schools by producing the best low-cost laptop in the market.
The purpose of this research project was to investigate the non-profit model used by
OLPC and its effect on their success; or more specifically, the lack of success
especially with the “hard lessons learned and challenges the organization faces”
(Buderi, 2009). For a balanced argument, the for-profit approach, as adopted by
other companies in the same market, was also referred to throughout (focusing on
one main competitor in chapter four). The project objectives are outlined on page 3.
The investigation has shown that OLPC’s approach in using a non-profit business has
had a major effect in all areas of the organisation. To say that it has had a complete
negative effect on the organisation would be unfair. Without the non-profit approach,
the design and creation of innovative features in the XO laptop may not have
occurred because there was a focus on creating a laptop at the lowest cost possible
whilst still containing features to suit the target market; children. Negroponte is
quoted as saying OLPC targets and challenges “things the normal commercial market
won’t be pushing?” (Buderi, 2009). With OLPC’s formation, we may not have seen
the creation of other humanitarian-driven projects such as Sugar Labs and Pixel Qi;
both still work closely with OLPC. Having a non-profit status has also been identified
as a good route to negotiating with governments and other leading charitable
causes. Here, rather being driven by profit, the goal is to improve the humanity of
those in less fortunate positions. With this comes the drive to continue and achieve
the mission; OLPC have recently signed a partnership with EAC with the aim is to get
“computers to every primary school child in East Africa” (Fildes, 2010). In the article,
Matt Keller, of OLPC, is quoted to estimate that there are currently 1.6 million XO
laptops around the world; with commitments for another 400,000.
On the other hand, the non-profit approach used by OLPC can be seen to have
contributed to some of the downfalls they have experienced so far. The movement
away from an open-source laptop approach was seen to be a driver behind such
instances like the loss in its management team. The difference in OLPC’s and Intel’s
motives was considered to be the main reason behind their initial partnership
breaking down. In OLPC’s case, being a non-profit organisation during an economic
recession was not the best combination; leading to programs like G1G1 having to be
scrapped (Paul, 2009) and cuts in its staff being made (Musil, 2009) in order to
survive on their tight budget they operate on.
Before explaining how the objectives were met, it should first be considered if the
correct objectives were set. As was found from the research, additional areas that
could have been investigated included the educational impact of the XO laptop.
In answering the first objective, it was found that the non-profit sector is made up of
a variety of organisation types. Appendix C lists these; as classified by the US IRS.
Each classification has different requirements to each other; with some being able to
claim tax-exempt status for each of their business operations. Worth (2009)
identifies the common trend for non-profits to split up into different operations arms;
as a workaround to the restrictions imposed by governments. OLPC could be viewed
to have also taken this approach with the creation of their ‘foundation’ and
‘association’ arms (see Table 1). In relation to the public and private sectors, Gunn
(2004) proposes the emergence of hybrid organisations as the boundaries between
each industry sector are suggested to be merging together.
Answering objective 2, Phills (2005) describes the mission statement as being the
reason “why people get up in the morning and go to work in a nonprofit” (p. 22).
Table 1 lists the mission statements of OLPC’s operations. It appeared that OLPC
have had the tendency to change their mission goals and objectives over the past
few years; to much criticism from Vota (2010). Whilst Kickingbird (2002) recognises
the need for mission statement to be flexible over time, Worth (2009) calls for this
element of a non-profit to not become either narrowed or broad; otherwise there is a
risk of the organisation not being able to meet their motives. In basic terms, OLPC’s
vision is to change the way that children learn by making use of technology;
specifically with the use of the XO laptop.
Upon answering objective 3, it was found that OLPC could be credited to have
started the current netbook market and its rapid growth (Vaughan-Nichols, 2009).
Table 2 looks at the other devices, which could be considered as being challengers to
Chapter four looked into Intel’s approach for getting their Classmate PC design to the
market. To reiterate the point, Intel use a for-profit approach in order to distribute
and manufacture the Classmate PC; through the partnerships between OEM’s and
OED’s. To answer objective 4, the many differences were learnt between OLPC’s
non-profit approach and a for-profit approach; as used by Intel. The main ones are
briefly highlighted below:
OLPC have control over the designs of the XO laptop whereas Intel only
provide a reference design for their Classmate PC; which can be modified by
its ODM’s/OEM’s.
OLPC oversee the production side by sending orders through to the one
location that manufacturers them. Through their OEM’s, Intel have a global
distribution network.
OLPC aim to produce at the lowest cost possible; targeting at $100. Intel
allows their ODM’s/OEM’s to dictate the final price; the profit is made through
providing the core hardware components.
OLPC target themselves towards governments; with the aim to achieve bulk
orders which can then be distributed out. Intel allows for the product to be
freely purchased by anyone.
To answer objective 5, it was generally found that the organisation has done well to
achieve a majority of their goals, especially considering they are up against for-profit
companies in the same market space. However, most of the articles read were also
critical of the organisation and suggested change within its management and
approach to meeting their goals. Some suggested ideas were also found to link OLPC
to not falling under some of the strategy and business planning issues, specifically
for non-profits; as identified by Lawrie (2007).
The biggest limitation of the project was the short time given to complete the
research. This resulted in some missed opportunities that may have contributed
towards better results being achieved. These included the prospect of speaking to
leading experts in the fields of technology and education. This would have required a
lot of early planning and coordination of schedules. Furthermore, more responses
from people directly involved in OLPC operations may have resulted in a more
balanced argument against the research question asked.
The survey collected a total of 70 responses. Whilst this a good sample size, a
greater variety of responses could have brought up more recommendations aimed
towards OLPC and lead to better comparisons being discussed. In some brief
feedback from the respondents, some felt more questions could have been asked to
cover other areas of the organisation such as the impact of the XO laptop around the
world; to produce more objective statistics. It was also felt that some questions were
“too leading for an objective study” (59190192); namely questions 10 and 11.
It was also found that there was limited published literature concerning OLPC. This is
because OLPC have only been in existence for the last few years. This brings up the
question; is it too early in OLPC’s life cycle to assess whether it has been either a
success or not?
The usual further expansion opportunities would be in getting a larger sample size
and more face-to-face interviews with leading figures.
The research question asks vaguely for whether the organisation has been a
success or not; the interpretation of it being a success can range from the
amount of laptops sold or the new opportunities and innovations that OLPC have
brought to the world. To extend the research question further, we could also look
into the impact of the XO laptop from an educational point of view. Here, the idea
would be to investigate whether the non-profit model used has been a ‘success’ in
enhancing the learning for children in developing countries. This could be done
with observational research from going into classrooms/schools and studying how
the XO laptops are being used and the effects the non-profit business model has
on logistics and local deployment. This approach would be more social sciences-
oriented rather than business-oriented; as with this investigation.
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hardware/desktop/showArticle.jhtml?articleID=210700287
Greenemeier, L. (2009, January 8). New Tech Makes Classroom Computers a Reality
Worldwide. Retrieved March 23, 2010, from
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Gunn, C. (2004). Third-sector development: making up for the market. New York:
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Hamm, S. (2008, March 5). Negroponte Seeks a Laptop CEO. Retrieved 13 March,
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tc2008035_429837_page_2.htm
Hartley, A. (2010, March 31). Pixel Qi and OLPC team up to develop laptop screen
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computing/pixel-qi-and-olpc-team-up-to-develop-laptop-screen-tech-680829
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Hobbes, J. (2009, August 10). Intel to squeeze more profit from netbooks with next
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intel-to-squeeze-more-profit-from-netbooks-with-next-generation/
Hopkins, B.R. (2005). Nonprofit law made easy. New Jersey: John Wiley & Sons.
Iacolare, L. (2007, January 27). The Digital Divide: Issues And Possible Solutions.
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01/27/the_digital_divide_issues_and.htm
Intel Corp. (2008). Intel – News Fact Sheet. Retrieved March 18, 2010, from
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IRS. (2009, September 15). Social Welfare Organizations. Retrieved March 23, 2010,
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Kaplan, R.S., & Norton. D.P. (2001). The strategy-focused organization: how
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Krstić, I. (2008, March 18). Maintaining clarity. Retrieved March 11, 2010, from
http://radian.org/notebook/maintaining-clarity
Lawrie, A. (2007). The Complete guide to business and strategic planning for
voluntary organisation (3rd ed.). London: Directory of Social Change.
Lemon, S. (2007, June 11). Hands on with Intel's Classmate PC. Retrieved March 23,
2010, from http://www.infoworld.com/t/hardware/hands-intels-classmate-pc-647
Longino, C. (2006, July 26). India Says No Thanks To The $100 Laptop. Retrieved
March 2, 2010, from http://www.techdirt.com/articles/20060726/101214.shtml
Malik, H. (2008, April 3). Intel Classmate 2 Gets Official, Available for Individual
Consumer Purchase. Retrieved March 19, 2010, from http://gizmodo.com/375491/
intel-classmate-2-gets-official-available-for-individual-consumer-purchase
Marketwire. (2010, January 21). One Laptop per Child Announces 2010 Field
Volunteer and Internship Opportunities in Afghanistan, Cameroun, Haiti, Mali,
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2010, from http://www.marketwire.com/press-release/One-Laptop-per-Child-
Announces-2010-Field-Volunteer-Internship-Opportunities-Afghanistan-1105311.htm
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accountability. Connecticut: Praeger.
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http://www.media.mit.edu/people/nicholas/
MIT. (2006, February 15). Moss appointed Media Lab director. Retrieved March 1,
2010, from the MIT news website: http://web.mit.edu/newsoffice/2006/medialab-
moss.html
Musil, S. (2009, January 9). OLPC slashes workforce in half, cuts salaries. Retrieved
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92.html?part=rss&subj=news&tag=2547-1_3-0-20
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statistics/user-guidance/lm-guide/concepts/employers/jobs/pub-and-priv/index.html
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adult_xo_users_take_olpc_impac.html
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2008/03/olpc-security-expert-resigns-over-reorg-as-project-flounders.ars
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project. Retrieved March 11, 2010, from http://arstechnica.com/hardware/news/
2008/04/exodus-of-key-figures-from-olpc-a-troubling-sign-for-project.ars
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layoffs.ars
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revealed/
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1320090107?pageNumber=1&virtualBrandChannel=0
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Sage Publications Inc.
School of Computing
Final year project
Basic details
There is no doubt that companies have realised this too with one of the first pioneers of
mass introducing technology in the classroom being the One Laptop Per Child (OLPC)
project, fronted by former MIT chairman Nicholas Negroponte. The XO-1 laptop,
released in 2007, is the company’s one and only product with a promised production
cost of only $100. However, OLPC have adopted a unique approach in achieving their
goals in that they operate as a non-profit company and sell only directly to governments,
who then hand out the laptops into the classrooms.
In order to meet this aim, there will be smaller objectives that will be looked into first
such as analysing the current state of the OLPC project, what has contributed so far to
its poor initial sales, who it has affected and what has resulted in the market from
OLPC’s introduction.
Project deliverables
The project deliverables will include a final report document, consisting of both primary
and secondary research that I will have carried out. This will include analysis of recent
news topics and a survey of the public’s views surrounding OLPC.
Project constraints
Seeing as the OLPC project only came into existence in 2005, I may have to rely heavily
on internet news sources and recently published journals. I could come across the
situation where facts and figures are altered or incorrectly published. Therefore the
integrity of data I collect will be important. Using a large variety of sources and cross
Project approach
My approach will aim to allow for a fair and non-biased review of OLPC’s business
model and to answer the question ‘whether adopting a non-profit model was the right
choice’. Ideally I will conclude with my final opinions and suggestions around the topic so
it is vital that I approach this investigation with an open mind.
Being a student, I believe there is still room for more improvement concerning my
referencing skills and effective analysis readings. The university library promotes
students to attend seminars aimed at improving the academic skills that future
employees would expect from graduates.
However, the odd occasion could arise where online resources are not accessible due to
IT systems maintenance. These do not usually take long and the university usually
makes sure all students are aware of any issues and scheduled maintenance via email.
Log of risks
As I am also studying other university units during the year, it is important that I manage
my workload well so I do not fall behind on the project. Creating a weekly timetable
allowing for days to concentrate on my other studies and days to work on my project
investigation would be a good starting point.
Naturally, I might not follow the timetable on certain weeks due to examination revision
and other coursework deadlines. Therefore, I would need to reshuffle my timetable and
identify other periods of free time I have spare to concentrate on my project
investigation.
Project plan
I have decided on setting myself three major project deadlines to meet over the coming
months. Stage 1 will involve the gathering and analysis of all my research from primary
and secondary sources. Moving onto stage 2, I will need to identify where to place the
research findings in relation to the investigation chapter topics. Stage 3 will consist of
completing draft write ups for each chapter and then finishing off with the final structured
report.
Stages are likely to overlap if I find that certain tasks take longer than expected to
complete such as gathering my primary research data.
Signatures
Signature: Date:
Student:
Client:
Project supervisor:
Ethical Examination
1. Will the human subjects be exposed to any risks greater than Yes No
those encountered in their normal lifestyle?
X
For example: could the study induce psychological stress or anxiety; is more than
mild discomfort or pain likely to result from the study; will the study involve
prolonged or repetitive activities?
Comments:
Comments:
If the results of an evaluation (for example) are likely to be used beyond the term X
of the project (for example, software is to be deployed or data is to be published),
then signed consent is necessary. A separate consent form should be signed by
Comments:
The payment of human subjects must not be used to coerce them against their
better judgement, or to induce them to risk harm beyond that which they risk
without payment in their normal lifestyle.
Comments:
5. Does the study involve human subjects who are unable to give Yes No
informed consent (for example: children under 18, people with X
learning disabilities, unconscious patients).
Parental consent is required for human subjects under the age of 18. Additional
consent is required for human subjects with impairments, and people assessed to
be lacking in mental capacity. If consent is gained from a person other than the
human subject themselves e.g. a parent, then written consent must be obtained.
Comments:
This is difficult to know because the subjects are only in contact over
the internet, and not in person. Subjects will be asked for consent and
will remain anonymous.
Comments:
Subjects will already have an interest in the topic area seeing as they
are already signed up on a dedicated internet forum. It is unlikely that
I will have influence as they are expected to have their own personal
views around the topic area.
Comments:
The purpose of the survey will be available to read before the subjects
choose whether to take the survey or not.
8. After the study, will human subjects be provided with feedback Yes No
about their involvement and be able to ask any questions they
may have about this involvement? X
If the human subjects request further information, the investigator must provide
the human subjects with sufficient details to enable them to understand the nature
of the investigation and their part in it.
Comments:
At the end of the survey, the subjects will have the option to request
feedback if they wish so.
9. Will the human subjects be informed of the true aims and Yes No
objectives of the study?
X
Withholding information or misleading human subjects is unacceptable if human
subjects are likely to object or show unease when debriefed. It must be clear to
human subjects if information is being withheld in order to elicit a true response.
This should precede any analysis of the data.
Comments:
The subjects will be informed of the reasons behind the project and
why research will be useful as part of the investigation.
10. Will the data collected from the human subjects be made Yes No
available to others (where appropriate and only in relation to
X
this research study), and be stored, in an anonymous form?
All human subject data (hard-copy and soft-copy) should both be stored securely
and, if appropriate made available, in an anonymous form. Making human subject
data available to a third party may be relevant where a student is taking part in a
wider research project eg. for a member of the University staff, in which case
anonymity of human subject data must be preserved.
11. Will the study involve NHS patients, staff, or premises? Yes No
If yes, then an application must be made to the appropriate external NHS Local X
Research Ethics Committee (LREC). For projects other than postgraduate
research studies, the length of time for gaining external approval may not fit into a
project timescale.
Comments:
There will be no relation with the NHS at any stage of the study.
12. Will the study involve the investigator and/or any human Yes No
subject, in activities that could be considered contentious,
morally unacceptable, or illegal? X
If yes, then further approval must be sought. For example: a project involving the
study of pornography on the web will fall into this category. It is possible that the
project may not be allowed to proceed.
Comments:
The study will not involve any illegal or ethically unaccepted practices.
The data gathered will only represent the views of the individual and
not be tied to any outside organisations.
• Any documentation that the investigator has created to gather informed consent
from the human subjects. This may be an Informed Consent Form, or a form of
wording used to get verbal consent. (See
http://www.btinternet.com/~trking/icf.htm for an example of an Informed Consent
Form for research study with human subjects).
I'm currently a final year student at the University of Portsmouth and I am undertaking
research for my dissertation. My topic is based around the One Laptop per Child project
and I have identified [forum name] as being a suitable location for carrying out some
primary research. This would be in the form of a short questionnaire.
I would very grateful if you would allow me to post my questionnaire up on your forum.
To increase the response rate, I was thinking of having the questionnaire posted
temporarily as a sticky thread or by sending a private message to active forum members to
link them to the thread.
I look forward to hearing your response. I could send you the questionnaire (via email) if
you would like to look through it first before making a decision.
Regards,
Mikul Patel (Business information Technology at University of Portsmouth)
mikul.patel@myport.ac.uk
I'm currently a final year student at the University of Portsmouth and I am undertaking
research for my dissertation. My research is investigating how business model used by
One Laptop per Child (OLPC) has affected its success. I would also like to get some brief
views from actual users of the XO laptop or from people with an interest in the project.
It would be much appreciated if you could spare a few minutes of your time to complete
my questionnaire. Including your username would be very helpful for the purposes of easy
referencing. Alternatively, you can just put your name as anon if you don’t want your
username associated with the results. All participants will be thanked and acknowledged
in my final dissertation report.
Once the report is finished, all electronic copies of completed questionnaires will be
deleted for data protection reasons.
Regards,
Mikul Patel (Business information Technology at University of Portsmouth)
mikul.patel@myport.ac.uk
501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959).
OLPC Chiapas 40
OLPC Friends 80
OLPC Mali 30
OLPC UK/Pilots/London2009 50
OLPC Pakistan/Rawalpindi 27
Female
I don't own an XO laptop but I have used one before (skip to question 4)
Given as a donation
Other:
As a testing machine
Novelty item
Other:
Satisfied
Very good
Excellent
2006
2007
2008
2009
2010
6. How would you rate the level of media coverage that OLPC has received?
No media coverage
7. How would you rank the following media as being key to advertising the OLPC
initiative?
1]
Blogs
2]
Forums
3]
Newspapers/magazines
4]
Public displays
5]
Radio
6]
Television
7]
White papers
8]
Word of mouth
8. How would you rate the success of the XO laptop since its release in 2007
Not successful
Partially successful
Very successful
9. Could the XO laptop compete commercially against current netbooks on the market?
Yes
No
Undecided
10. What should be considered as most important to supporting the OLPC initiative:
The business goals and objectives
11. Do you agree with the idea that OLPC should act more like a for-profit business in
order to boost sales/success?
Yes
No
Undecided
12. (From a business perspective) If you had to change anything about the OLPC initiative,
what would it be and how would it change the organisation’s performance:
Q4. (a) How would you rate your experience of using the XO laptop?
(b) Briefly state why you think this:
Code Value
I like it very much, it is small, convenience, it has a lot of good programs like Etoys,
54835724
Scratch and TurtleArt. Today I installed OpenOffice on it.
54858988 Good hardware marred by manufacturing defect, unfinished software, very slow
54857541 Using Teapot's Ubuntu, the XO is a fairly useful machine.
The OLPC is heavily compromised towards younger users, and until very recently the
OLPC project didn't do a good job of merging their kernel changes into the standard
54869902 linux kernel sources. So the keyboard kind of sucks, and it's hard to get anything but
Sugar running on it. Also, unfortunately the OLPC uses an x86 CPU instead of a more
power-efficient ARM CPU, so you wind up getting really poor performance per watt.
In a lot of respects, this is a great little computer. Rugged, small, great battery life, and
55019597
just generally fun.
55133052 Rugged, reliable, and simple. Fulfills my needs without overkill.
Piqued my interest in Linux, so I'm enjoying this laptop more than any other computer
55251525
I've owned.
1. it is difficult and inconsistent accessing wifi signals that are no problem for other
laptops to access. i mainly use my xo to go online and so it is useless when it can't
connect to a hotspot to which everyone else can connect. 2. the operating system:
55911245 sugar v8.2 is still difficult to use, sugar-on-a-stick doesn't work on the xo, and i have
not had success running another linux distro. 3. as an ebook reader the xo is nice but it
doesn't save my place in the book and i can't load a file directly into write, i have to
open it with browser first and that is annoying.
I enjoyed my xo for the price. I learned a lot about programming and technology. Now
that netbooks running familar operating systems are the same price or cheaper than the
56071275
XO, I don't know if XOs are practical anymore in the education environment in the
United States. My XO is slow compared to even my smart phone now.
xo accompanies me everywhere (and makes friends wherever I go), is not only versatile
but also very durable, unlike other laptops.) Having the ability to install programs and to
utilize commands in Terminal is a great feature. I would like to continue learning
56132791
Fedora's Linux and would welcome a Fedora group (rather than switching to Ubuntu). I
plan to carry my own version of an "xo business card" to hand out whenever I'm xo-ing
at cafes, etc.
I think it is a perfect machine for kids to focus on important computing lessons w/o the
56577531
"noise" that you get with regular adult computers (mainly the internet surfing.)
56579512 works just as i had hoped it would..small internet tablet...
Even without an installation of Ubuntu, I found the XO perfect to use while reading in
56578799
bed or for traveling.
56582399 For the task it was designed to do, the machine performs fairly well.
Sugar is slow, but not odious. Sufficient software is available to do most typical work,
especially with a remote server as my software development box. Significant exceptions
56581491 include e-mail (using Sylpheed is slightly clunky), Office documents (until OOo4Kids
releases and shrinks down), accessing Windows shared folders, and accessing external
hard drives.
56583337 trackpad impossible; upgrading os is a multistage process i don't have time/interest in
I am satisfied in what it does because I have adjusted my expectations to meet the
capabilities of the XO. I used it for 2 months as my main computer, when I was
56585524
interning with OLPC in Mongolia. It got the job done for what I needed to do and I
learned a lot about Linux in the process, which has opened new doors for me.
Code Value
54835724 A few countries like to invest in something new, they prefer old things well known.
In spite of OLPC's top management's total ineptitude, the computer has managed to
54857541
survive.
I think the OLPC XO, despite some problems, does a pretty good job at what it was
intended to do. Despite my complaints as an end-user who is not in their target
54869902
audience, my impression is that when these laptops wind up in the hands of kids, good
things happen.
The XO could have done MUCH better if the original G1G1 had been executed cleanly,
55019597
and if they had not alienated their eager Linux fans by entertaining Microsoft.
Deployment was not well organized. Product was not ready for first release. Once in
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user's hands, though, the XO generally fulfilled its mission.
55255962 The project was effectively abandoned due to internecine warfare.
Not as much market penetration as hoped, but the hardware is awesome. HW version
55251525
1.5 (more speed) is a bit late to market.
olpc single-handedly created the netbook market, and the xo is still technically superior
other netbooks based on its display, rugged design, and 3 processors. i have not been
55911245
following xo deployments oversees so i can't comment on international success or
failure.
It was a success for what it did at the time. It is a success for international computing,
56071275
which is what is was designed for and revolutionized netbooks.
'Tho not completely qualified to answer this, I'd say XO needs a more successful G1G1
56132791
program. Call it the XO Computer Peace Corps and get Pres. Obama involved.
For the kids around the world, they are lucky to get to learn on the XO... too bad it was
56577531 not made more available to US kids who severly lack math and science skills with the
XO could have improved.
There has not been as much advancement as promised (or it's been VERY slow going)
56578799 or integration into classrooms and we never hear about the laptops that have been
deployed through the G1G1 campaign.
Despite not achieving the 7M+ stated by NN, 1.5M served in 3 years is more than
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respectable.
Technically, it's a near success, as mentioned above. Commercially, it created the
56581491 netbook market. Unfortunately, it has failed by trying to restrict itself to academia,
especially in locations where there are more pressing issues than Internet access.
56583337 sugar / olpc breakup was a distraction
It hasn't caught on per say, but there have been more than 1 million XOs deployed
56585524
around the world, and it helped to start the netbook category of laptops.
-They have not deployed as many as they could have. -Flirting with Microsoft and
alienating Open Source advocates was a mistake -Producing an Windows XO is a
56599264
problem because this will produce more good little developing world cookie-cutter
workers, rather than innovating, educated transformative humans.
56605868 They have sold a lot of XOs, but not nearly as much as they sought to.
--pros-- 1) I was impressed by the early machine I played with. I think it could be good
to have in schools. There is a lot of potential still left in the OLPC concept. 2) I think that
56607485 OLPC has successfully introduced some innovative constructivist teaching methods by
including the "Sugar" software which runs on the XO. --cons-- 3) The price is still too
high. 4) The software/hardware is still a work in progress.
The program is still alive, that's a success in itself ... but there is clearly a lack of
56617305
outreach, penetration and user satisfaction.
56621037 the hardware is great, the software is not great
Q9. (a) Could the XO laptop compete commercially against current netbooks on the
market?
(b) Briefly state why you think this:
Code Value
They can't compete, they are addressed to different people. XO laptop is for children to
54835724
learn better, netbooks are for adults with other kind of software.
54858988 Too slow
54857541 As a "business", the OLPC is a disaster!!
54869902 It is just a little bit too under-powered, and because it runs Open Firmware rather than
Q11. (a) Do you agree with the idea that OLPC should act more like a for-profit
business in order to boost sales/success?
(b) Briefly state why you think this:
Code Value
For-profit business are the same like the others that don't think to improve education of
54835724
poor children, on the contrary they think about money.
54858988 They can't compete, and they would lose what is left of their volunteer goodwill.
Q12. (From a business perspective) If you had to change anything about the OLPC
initiative, what would it be and how would it change the organisation’s
performance:
Code Value
I think this initiative it can't work for business perspective, education is different. We
think first on children and their wellbeing. ATTENTION!!! I had to answer the 10
54835724
question, but my answer is none of them. What should be considered as most important
to supporting the OLPC initiative? CHILDREN
54858988 See if you can recruit some business people to contribute to the day-to-day operations.
OLPC should look carefully at the Paul Newman Gourmet Foods model. They make an
EXCELLENT line of gourmet foods (and command a premium price)...and all of the
profits go to charity. OLPC should strive to have an avant garde piece of hardware at a
54857541 competitive price in the open commercial market, aggressively advertised, with superior
service and support. Profits would underwrite the charitable component of the
operation. It might be desirable to have more than one line of computers: a high-tech
commercial model vs. a low-tech student model.
54869902 Sell the laptops to anyone who wants one.
54875417 Provide a better quality/efficiency software
Change #1: Go back to your roots. I think the OLPC initiative made a MAJOR mistake
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when they turned their back on one of their core principles, that is, to remain an open