Dear reader,
Welcome back to the last stretch of our blogging quest to Re:Power Development.
Over the past few weeks, I have been exploring the importance of Information and communications technology (ICT) in the development world, looking into artificial intelligence (AI) and power dynamics within the development ecosphere.
While taking into consideration that the nonprofit industry has always been at the forefront of innovation with much progress happening over the last few years – as a side note, you can read more about projects utilizing the power of Information and communications technology for development (ICT4D) in my previous blog here – there are still huge gaps that are hindering the technological advancement of the nonprofit industry and with that, the world.
So, my question is: If we see nonprofits as a key players in enabling information technology usage to support better livelihoods around the globe, what is the reason for ICT(4D) not to be at the forefront of everyone’s agenda and why don’t they invest more resources into building better ICTs?
Where are we standing today?
In the last few decades, we have seen how information and communications technology shaped and is continuing to outline the political and cultural happenings all across the world – from today’s ongoing Iranian protest in 2022, racially backed Black Lives Matter movement in 2020 and one of the first ICT charged movements in 2011 the Arab Spring. Things are changing in unimaginable ways and ICT is playing a huge part in that story.
Nonprofit organizations have long used ICT4D. Private nonprofit research institutions were among the first ones to develop and implement cutting-edge technology. Foundations were and still are instrumental in much of the early development of technology. This technology has advanced us to the point where we are standing today. ICTs are ubiquitous in all organizations, business sectors, and countries around the world and play a bigger role now than ever. New technologies have spread far and wide and will continue to proliferate (Geoff Walsham, 2015). Studies have also repeatedly shown us that when organizations invest in robust infrastructures, such as powerful information technology systems (ICT), financial systems and other necessary overhead, they are more likely to succeed than those that do not (Gregory and Don Howard, 2019).
According to SalseForce 2020 report, 85% of non-profits polled said that the technology is critical to their organizations’ success. Furthermore, the survey results showed that those with fully aligned strategies supported by data are more likely to succeed. So yes, nonprofits can truly benefit from technology – not only to optimize their business process but to increase the impact of their missions. Maybe that is why digital transformation has become a part of everyone’s vocabulary – or better DT, as everything in the nonprofit industry sooner or later becomes an acronym.
Today, nonprofits are at a junction, where they must decide whether to change and invest in up-to-date technologies or risk becoming obsolete. Many have begun the digital transformation journey, but many are still lagging for a variety of reasons, which I will discuss in the next paragraph.
What are the reasons stopping the nonprofit industry from technological advancement?
A very unique attribute of the nonprofit industry is that it faces distinctive challenges that can delay or even prevent innovation processes and ICT advancement. These unique features of nonprofit organizations can be anything from dealing with moral considerations in serving clients, working on or alongside people, difficulties in setting criteria and measuring success, fear of media exposure of failure, and reliance on external funding, which are among those challenges (Jaskyte 2011).
But what are some of the challenges that are hindering the nonprofit industry from better integrating technology into their agenda? Below you will find the top five factors based on John O’Grady and Paula Roberts’s (2019) findings:
Approach and Strategy to ICT
One of the biggest recognized challenges was linked to the overall strategy or rather lack thereof – everything from waiting for leadership for more dramatic technology transformation to resource constraints and operational challenges.
Leadership and Strategic Agenda
The second factor of ICT4D integration in the nonprofit industry is the willingness of the Executive Board or Leadership to commit substantial funds to technology investments. For an organization to be open to digital transformation, as seen also from my professional experiences, so should the management. This is also linked to a series of previous failed projects that cast a shadow over the organization’s future technological ambitions as the fear of another failure remains. On the opposite side, successful projects together with “energetic visionary leadership” established a mandate for more transformative activities.
Executive Representation for the ICT function
Hierarchy, although unfortunately, even in this industry matters. If you want to change, the decision must come from “high up”. In companies where the ICT function was represented in the organization’s leadership, the technology executive extended opportunities to engage in ongoing dialogue with executive peers about the capacity of technology to add value to strategic initiatives. They also noted that the critical function of ICT teams is especially relevant in the context of emerging technologies such as AI, machine learning, and data analytics.
Funding Issues
A significant challenge is inevitably the lack of funding that is required to invest in technology. A majority of the sector heavily depends on government grants and funding, not many of them are encouraging the NGOs/IOs to invest in long-term transformational strategic projects, but rather more into short-term “visible” achievements that can be displayed on social media. Linked to this is the issue to demonstrate the careful use of donated funds and grant income, which can make funding major technology initiatives difficult. They share a great comparison from one of the interviewees:
Our sector is driven so heavily by the demands of our donors. When you buy an iPhone or a Ford car you don’t tell Ford that you want to know exactly how much they funded in overheads in making that car. Our sector has the unique challenge to actually do that.
Data Issues
Compliance with funder requirements may also directly or inadvertently stymie the organization’s desire to upgrade its technology processes. The process must be in line with funders’ compliance requirements, which are often not attainable within the nonprofit’s framework.
How to encourage and realize ICT4D in the nonprofit industry?
Despite all the challenges accounted for above, nonprofits have been working hard to introduce innovative programming into their missions. Salamon et. all. (2000) took it even a bit further and suggested that innovation is an essential characteristic of nonprofit organizations. Similar to John O’Grady’s and Paula Robert’s findings, a unanimous consensus is that new technologies, including artificial intelligence (AI), can and must radically transform how non-profit organizations deliver services, manage operations, and engage with stakeholders in order to remain relevant in the modern economy.
So, what are the best ways for nonprofits, which are limited by obstacles such as funding and capacity, to integrate ICT(4D) into their strategic agenda?
One great way is to rely on the power of partnership. As I have experienced through my work before, many of the so-called tech giants such as Google, Meta, Microsoft etc. dedicate a certain amount of their “pro bono” hours to help nonprofits and their ICT departments. Being able to not only engage with these skilled professionals but potentially also work with them is crucial for the success of the organization. As nonprofits are often restrained with resources – both in knowledge and personal – learning from “the best out there” creates a great opportunity to outsource the problem.
Second is making connectivity and technological innovation a priority. If you have even worked in a small, underfunded NGO, it might be difficult for you to support the idea to invest in digital transformation and ICT instead of delivering food to hungry who rely on the help of a local NGO. But before you say no, acknowledge that technology is essential as it has the potential to impact every priority that nonprofits may have, from education to providing various services that benefit the beneficiaries etc. It will also benefit NGOs to be more commercially minded when interacting with major tech players.
Once the right digital and technological tools will be applying in your work, the organization will be able to target the right audience and deliver communication materials to the people which are intended to. Sevi Simavi, CEO of the Cherie Blair Foundation for Women said it best:
Tackling the digital divide isn’t just about putting a mobile phone in a woman’s hand, or connecting her to the Internet. It’s also about creating digital content and services that meet the needs of underserved communities and effecting behaviour change for them to engage with that content.
In closing, the 21st century will be an interesting one for the developing world. And ICT, together with digital transformation, will be a key deciding factor for the future of the nonprofit industry.
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Bibliography
Gregory, A. G., & Howard, D. (2009). The nonprofit starvation cycle. Stanford Social Innovation Review, 7(4), 49-53.
Jaskyte, K.: Predictors of Administrative and Technological Innovations in Nonprofit Organizations. Public Administration Review, 71(1), 77-86 (2011)
O’Grady, John, and Paula Roberts. “The Digital Transformation of Irish Non-Profit Organisations.” AICS. 2019
Salamon, Lester M., Leslie C. Hems, and Kathryn Chinnock. 2000. The Nonprofit Sector: For What and for Whom? Working Paper no. 37, Johns Hopkins Comparative Nonprofit Sector Project.
Walsham, G. (2012). Are we making a better world with ICTs? Reflections on a future agenda for the IS field. Journal of Information Technology, 27(2), 87–93
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Note from the author:
I would like to take this opportunity to say thank you to my colleagues, who helped me through this journey and taught me valuable lessons of teamwork and express my gratitude to my professors, who have been guiding all of us through this wonderful and exciting journey.
Writing about ICT4D linked with AI, innovation, and technology in general really made me question all the unexplored opportunities out there that can change the lives of thousands, millions, and even billions. Seeing the great work of nonprofit organizations using ICT for good is what keeps us all going. And that is the wonderful part of C4D – unlimited ways of engagement and countless opportunities for change.
Writing only academic articles shapes the way you think, and the way you write and in a way also limits how you share your ideas. This exercise allowed us to break away from the stiff rules and use creativity in a new way.. Blogging has been up until now an unexplored territory to share my thoughts. This new way of transmitting my ideas in a little less academic way was a breath of fresh air and a highlight of this assignment.
But most of all this course made me put things into perspective – learning from my colleagues coming from different backgrounds, who share similar or not those alike experiences, made me realize we are all interconnected, in one way or another.
