SaaS, the Disabled, and the Economics of Disability

By Luka Erceg, San Diego, CA - I have been disabled since 2018, when I lost my left arm at the shoulder (left should disarticulation) due to sepsis and necrotizing fasciitis brought on by food poisoning from bad oysters). Since then, I have been adjusting to my new reality. Naturally, I have looked to organize and simplify my life through the use of software-as-a-service ("SaaS") tools. Undoubtedly, as compared to any point in human history, there is no better time to need the medical system then further into the future.

Just like technology advancements in medicine, so to has technology advanced in everyday living, but what has transpired for me is learning of the emergence of systemic discrimination by software vendors and online service providers. While likely not intentional, it is nonetheless disconcerting. Persons with disabilities ("PWDs") are injured not just by the insidious discrimination, but we are also penalized economically.

I believe it is important to first state that all matters of diversity as it relates to PWDs are more complex than dealing with other marginalized groups such as on the basis of race, sex, sexual orientation, etc. Their is a uniformity that exists not found with PWDs. That said, the mere fact that something is hard does not absolve us of the need or duty to address the challenge or to change.

My greatest criticism of SaaS vendors and online service providers is that in their zeal to streamline their offerings, standardize and reduce costs, they injure PWDs tremendously. I suspect much of this is not intentional, but it is certainly reckless and/or ignorant. Allow me to explain.

Try obtaining technical support today. Few vendors offer telephone support anymore. And, those that do offer phone support, require an elaborate system of submitting forms for a "call back" for support. Just as with sales, technical support typically begins with a "chat" request. Yet, consider for a moment the difficulty for PWDs that are visually impaired.

In my own case, I have one arm, and it makes typing difficult. Typing is difficult because I simply cannot enter information as quickly with one hand as I could, or someone who has two, can. Further, my arm is exhausted, and I suffer from tremendous pain brought on by the strain of overuse. What option do I or other PWDs have? Despite the fact that laws exist requiring software vendors be compliant with "accessibility" laws and regulations, typically only the largest firms comply.

Admittedly, even my firm could do better and we are now seeking tools to bring us to compliance. But, given 1 in 5 Americans suffer with a disability, we are all woefully behind. What is the impact?

The impact can be felt in different ways, and the easiest to consider is use. Without accessibility, use is affected, meaning PWDs cannot consume your products and services online. However, I wish to unpack a further economic issue that PWDs encounter.

In most cases, PWDs simply cannot get the same productive use out of software that a non-disadvantaged person would. Consider this simple example. I frequently use spreadsheet software in my daily activities. Prior to the loss of my arm, I could get, assume 10 units of use daily from my spreadsheet. Today, due to my injury, I can only get 4 units of use, and this is an actual analysis on my part that I am only 40% as effective.

However, the use of the software is $10 per month irrespective of the use I get from it. However, I am penalized because I simply cannot get the maximum use of the software. The net result is, for the same unit of consumption, I pay 2.5 times more than a non-disadvantaged person. Here is the math:

A = non-PWD units

B = PWD units

P = price / cost

Example:

Effective cost = A / B x P

= 10 / 4 x $10

= 2.5 x $10

= $25

Thus, a $10 per month SaaS offering costs a PWD $25 per month in real terms. The point is that the price of the service offering is constant both for the PWD and the non-disadvantaged person. Thus, in my case a PWD is penalized due to their disability. In fairness, SaaS and other vendors frequently offer a discount, but most respond that they have no discounts for disability. Even assuming a 20% discount, it does not bring parity to the economics of usage, and even with that discount, it costs someone with my use profile nearly double the average consumer.

A = non-PWD units

B = PWD units

P = price / cost

D = discount %

Example:

Effective cost = A / B x P x D

= 10 / 4 x $10 x (1 - .20)

= 2.5 x $8

= $20

Thus, a $10 per month SaaS offering costs a PWD $20 per month in real terms, still more than double with a discount..

I don't suggest that there is an easy solution to the problem, but here is the reality:

1. A PWD suffers from their disability;
2. Frequently disability lowers our productivity so that we cannot produce or earn the same amount hourly as a non-disadvantaged person; and
3. Add the effective cost of the services or products we must pay for, and the PWDs are disproportionately disadvantaged.

I am often asked about AI tools and voice recognition as it pertains to using my computer and software. Nuance and Microsoft have some great software tools for voice control of a computer. Nuance provides an excellent solution for dictating letters and other correspondence, while Microsoft's voice access add-in is amazing for offering commands to your computer. However, with the advent of AI, we still have a long way to go before these tools will offer the true fluidity of communicating. It is ironic that I feel like my Amazon Alexa device is more fluid in use than my computer - be it Apple or Microsoft. Until now, we will have to continue to rely on scripted voice commands -- an improvement to be sure -- but requiring much needed improvements.

I only hope to raise awareness to the myriad of challenges disability poses. PWDs suffer from physical, emotional, and economic challenges related to their disabilities. It is important to assist PWDs in being a productive part of society wherever they can be, as the cost to society is enormous if we don't.

Luka Erceg is founder and managing director of Dynamique Financial, LLC, a disability run financial services firm that offers investment management, wholesale insurance, asset management, turnaround and restructuring, strategies and other financial related services. His experience includes energy finance, the founding of Simbol Materials, and substantial board advisory engagements. He holds a Juris Doctorate (J.D.) from South Texas College of Law, Master of Laws (LL.M.) from the University of Houston Law Center, Master of Business Administration (M.B.A.) from Rice University, and Bachelor of Marketing (B. Com.) from the University of Guelph. He is a Certified Turnaround Professional (C.T.P.) through the Turnaround Management Association and a Certified Insolvency and Restructuring Advisor (C.I.R.A.) through the Association of Insolvency and Restructuring Advisors.?On January 11, 2018, Luka suffered a left shoulder disarticulation (amputation) due to a flesh-eating bacterial infection brought on by bad oysters, Scientific American published his blog article “I lost my arm to microbes but they can save the world”, on his tragic experience but the nonetheless ongoing importance of nature and microbiology in addressing global waste problems.