It is well into 2017 and companies are coming up with trends that they forecast for the year. LEE NAIK, CEO of TransUnion Africa, discusses the tech trends that matter to local businesses.
It’s well into 2017 and you’ve been bombarded with more trends pieces than you know what to do with. From the many articles covering the CES and Davos to the analyses by the likes of Accenture, McKinsey, Deloitte and other major consultancies, there’s a lot to absorb.
I’d like to apply a more strategic viewpoint. Sound business decisions should not be made on a whim, adopted every time a new, innovative technology claims to be the future of enterprise. To make these decisions easier, I’ve closely researched the predictions of big analysts, cross-referenced it with TransUnion’s extensive bank of data, and put together a shortlist of the innovations that should be at the top of any South African executive’s priority list.
AI becomes part of our everyday lives
Artificial intelligence (AI) came of age in 2016 and will continue to steal the limelight this year. While you may not quite be able to visit an AI-powered theme park just yet, at least you’ll be able to order a pizza while you watch Westworld.
In 2017, Chatbots will dominate headlines, as companies like Starbucks and Domino’s roll out virtual baristas, with retail and banks leading the early adoption charge. Here at home, Mercedes Benz and Absa are just two of the companies that have already bought into this new technology. But before you go all in on chatbots for your organisation, just remember that the technology’s not quite yet at a level to deliver a seamless customer experience by itself.
Less discussed (though hugely significant) will be the enterprise and industry use of AI. Most common will be the use of messaging platforms like Slack and Microsoft Teams, incorporating some form of automation and chatbot functionality. And this is just the start: from reporting to research, the automation of knowledge work is already well under way. IBM’s Watson is streamlining cancer diagnosis and treatment, for example.
The Internet of Things comes home (but might bring a nasty surprise)
The advances in machine learning are set to have another big impact – on the mainstream realisation of the Internet of Things (IoT) in the home. The likes of Alexa, Siri and other virtual assistants are nothing new, but we saw a record number of companies at the recent Consumer Electronics Show (CES) – from Ford to Whirlpool – bring out compatible products. Smart home devices have always lacked a single unifying platform, but the number of Alexa-compatible devices set to come out this year suggests we might soon have one. The competition is not too far behind either: Google Assistant is already arriving pre-installed on the Google Pixel, and Microsoft’s Cortana is expected to be included in a variety of gadgets released in 2017.
The flipside of the IoT coin will be the challenge of securing intelligent devices from opportunistic cybercriminals. From automation to as-a-service models, hackers have embraced digital innovation as eagerly, if not more so, as legitimate businesses. And the IoT revolution doesn’t just offer a whole new army of hackable devices, but connected business processes that can be exploited as well.
Gartner believes the need for an adaptive security architecture will arise in 2017. What that architecture might look like will be the question that preoccupies many enterprises this year, but it’s likely that it will be powered by machine learning, gathering actionable intelligence in real-time from a variety of sources and adapting as threats evolve. Think next-gen authentication platforms that can tell who you are, simply by analysing behaviour patterns.
Blurring the lines between digital and physical
The PlayStation VR may be the latest virtual reality headset to hit the market, and a sensation at technology trading shows, but experts agree that it’s augmented reality you should be keeping an eye on in 2017. If IDC’s prediction that 3 out of every 10 consumer Fortune 5000 companies will experiment with Augmented Reality (AR) or Virtual Reality (VR) is anything to go by, it’s clear the greatest innovation will be found at the juncture between physical and digital.
Companies will find new ways to use digital technologies to enhance real-world experiences. Take Carnival Cruises, which is rolling out the same technology behind Disney’s MagicBand onto its cruise liners. Or BMW, who’s partnered with Google to allow buyers to check out any of its cars, even if it isn’t in stock, using a virtual showroom. We’ll also see the rise of enterprise IT, as businesses explore using AR tech to boost operational efficiency. With manufacturers such as Lenovo starting to create devices aimed at the enterprise market, we’ll see more and more businesses make use of AR and VR for scenarios such as training and remote stock-taking, and general collaboration.
Betting money on Africa’s FinTech market
It’s important not to focus so much on the headline-grabbing tech – the darlings of CES and Davos – that we ignore the disruptions outside of the American and European bubbles. McKinsey & Company predicts that up to 3 billion people will connect to the digital world – a large portion of that from emerging markets.
With many in these markets still unbanked, a need has arrived for solutions that can turn them into fully digital consumers. As a result, we’re likely to see a convergence of FinTech aimed at financial inclusion and convenience that could allow emerging markets to leapfrog the West.
Keep an eye out for money transfer, POS, microfinance, and mobile payment services to emerge out of Africa this year. As for Bitcoin and other cryptocurrencies, the continent will prove a fertile testing ground for alternatives to paper money. This year sees Senegal launch its own digital currency, for example.
Stop thinking big data, start thinking smart data
For years now, businesses have been acquiring more data than they know what to do with. But even with considerable investments in analytics, companies are failing to realise the true value of their data. And a shortage of data science capabilities means businesses are seeking alternate means of securing and using information.
Cue the rise of systems and partners designed around smarter, value-driven data analytics. More and more, businesses will use platforms like Hadoop and Spark to work around their lack of data science expertise. Business Intelligence applications like Power BI and QuickSight should also gain in popularity. At the same time, we’ll see more resources spent on high-level data strategy, as businesses work out ways to use their information as the basis for new services, experiences and models. In 2017, we will see more businesses partner with specialist service providers and original equipment manufacturers (OEM) in order to accelerate the extraction of value from vast data sets.
The reinvention of corporate culture
With all these new game-changing technologies hitting us, never has the task of digitisation been more urgent. In 2017, businesses must continue to find new ways to challenge their current operational models, or run the risk of lagging behind.
There is, of course, the task of adapting to a service-based economy. Not only are we going to see businesses continue to redefine their existing models, but we’ll also see largescale changes to what we think of as corporate culture. From the gig economy and on-demand enterprise to process automation and as-a-service models, these changes will support more elastic, people-centric cultures. Whatever form these changes take, they will all be centred around one thing: unlocking human potential and creativity to be able to innovate and thrive.
SA consumers buy 3.2m smartphones in Q1
Smartphone sales in South Africa grew by 12.4% year-on-year in the first quarter of 2018, reaching around 3.2 million units for the period.
However, the value of the smartphone segment increased by 22.8% as sales of entry-level devices to low- and mid-income consumers continued to drive the market, according to point of sale data from market research firm, GfK South Africa.
GfK South Africa’s data reveals that telecommunications retail enjoyed a strong start to the year, with revenue growing 22.4% year-on-year. The growing popularity of phablets and higher unit prices (as a result of a weaker rand) helped to drive this increase in revenue, against a backdrop of low or negative growth in many segments of the consumer technology market.
“The mobile device market showed good growth in the quarter, despite rising prices during the period under review,” says Norman Muzhona, Solutions Specialist for Telecommunications at GfK South Africa. “In addition to the exchange rate, the introduction of popular, new mid-tier devices by several leading vendors helped to drive higher retail revenues in the telecoms market.”
Information technology retail revenues for the quarter contracted 4.8% compared to 2017, largely because of decreasing monitor prices and a 38.9% decline in tablet revenues. However, desktop computer revenues grew 39% and mobile computing revenues grew 6.5% year-on-year, thanks to higher prices and increased sales of higher-end products.
Says Berno Mare, Solutions Specialist for IT, Office Equipment and Value Added Services: “Retailers introduced new computing devices priced in the R3000 band during the quarter and enjoyed surprisingly strong demand for these entry-level units.
“Telcos enjoyed robust growth in mobile computing retail sales, thanks to credit deals, subsidised contracts and attractive data offers. However, South African consumers are heavily indebted, which may dampen growth for the rest of the year.”
With consumers rapidly migrating to smartphones, sales of traditional mobile phones continued to decline, down 1.6% year-on-year to around 2 million for the quarter. However, the exchange rate and the introduction of higher-priced brands helped to drive a 8.9% year-on-year revenue increase in mobile phone revenues during the period under review.
This follows the 21% drop in mobile phone unit sales in the first quarter of 2016 compared to the same period in 2015. “Operators continue to lead the transition from feature phones to smartphones as they pursue higher data revenues,” says Muzhona. “The entry-level market for smartphones is fiercely competitive, and the minimum specs of lower cost smartphones is improving all the time.”
GfK South Africa expects the migration from mobile phones to smartphones to accelerate in 2018. However, it remains to be seen if the introduction of 4G-enabled, Voice-over-LTE-ready feature phones will have any impact on the South African mobile phone market.
Sectors of the consumer electronic market that showed strong growth for the first quarter of 2018 include loudspeakers—revenues up 21.6% year-on-year, thanks to demand of Bluetooth-enabled product—and ultrahigh definition (UHD) panel TVs—where revenues grew 33%, thanks to the growing affordability of the technology. UHD unit shipments were up 76%, while the average selling price of the products fell 24%.
Other market highlights for the first quarter of 2018 include:
- Photo category revenues were up 8.1% year-on-year.
- Small domestic appliance revenues grew 8%, following a 10.3% decline in Q1 2016 over Q1 2015. Hot air fryers sold well, as did kettles and toasters.
- Major domestic appliances showed small year-on-year growth over Q1 2016, despite a decline in average selling price in many sub-categories of this market. Cooling products continued to make the highest contribution to growth in this segment.
- Office Equipment revenues declined 18% year-on-year, led downwards by lower printer and cartridge sales volumes.
What kids want online
Kaspersky Lab’s latest report on the online activities of children – based on statistics received from its solutions and modules with child protection features – highlights children’s online activities and the importance of protecting them when online. For example, video content globally, comprised 17% of searches over the last months. Although many videos watched as a result of these searches may be harmless, it is still possible for children to accidentally end up watching videos that contain inappropriate content.
The report shows anonymised statistics from Kaspersky Lab’s flagship consumer solutions for Windows PCs and Macs that have the Parental Control module switched on and from Kaspersky Safe Kids, a standalone service for Windows, Mac, iOS and Android devices.
In South Africa, communication sites (such as social media, messengers, or emails) were the most popular pages visited by computers with parental controls switched on – with users in South Africa visiting these sites in 69% of cases over the previous 12 months. Software, audio, and video accounted for 17% of searches. Websites with this content have become significantly more popular since last year, when it was only the fifth most popular category globally at 6%. The top four is rounded off with electronic commerce (4.2%) and alcohol, tobacco, and websites about narcotics (3.9%), which is a new addition compared to this time last year.
The report presents search results on the ten most-popular languages* for the last 6 months. The data shows that the video & audio category – including requests related to any video content, streaming services, video bloggers, series and movies – are the most regularly ‘googled’ by children (17% of the total requests). The second and third places go to translation (14%) and communication (10%) websites respectively. Interestingly, games websites sit in fourth place, generating only 9% of the total search requests.
We can also see a clear language difference for search requests: for example, video and music websites are typically searched for in English, which can be explained by the fact that the majority of movies, TV series and musical groups have English names. Spanish-speaking kids carry out more requests for translation sites, while communication services are mostly searched for in Russian.
More than any other nationality, Chinese-speaking children look for education services, while French-speaking kids are more interested in sport and games websites. In turn, German-speaking requests dominate in the “shopping” category. The leading number of search requests for porn are in Arabic, and for anime are in Japanese.
“Kids in different countries have different interests and online behaviors, but what links them all is their need to be protected online from potentially harmful content. Children looking for animated content could accidentally open a porn video. Or they could start searching for innocent videos and unintentionally end up on websites containing violent content, both of which could have a long-term impact on their impressionable and vulnerable minds,” says Anna Larkina, Web-content Analysis Expert at Kaspersky Lab.
As well as analysing searches, the report also looks into which websites children visit or attempt to visit that contain potentially harmful content which falls under one of the 14 preset categories** for the last 12 months.
The mobile trend is again highlighted in the figures for computer games, which are now in fifth place locally on the list at 3%. As kids continue to show a preference for mobile games rather than computer games, this category will only continue to decrease in popularity on computers over the coming months and years.
“No matter what they are doing online, it is important for parents not to leave their children’s digital activities unattended, because there’s a big difference between care and obtrusiveness. While it is important to trust your children and educate them about how to behave safely online, even your good advice cannot protect them from something unexpectedly showing up on the screen. That’s why advanced security solutions are key to ensuring children have positive online experiences, rather than harmful ones,” adds Anna Larkina.
The Kaspersky Total Security and Kaspersky Internet Security consumer solutions include a Parental Control module to help adults protect their children against online threats and block sites or apps containing inappropriate content. In turn, the Kaspersky Safe Kids solution allows parents to monitor what their children do, see or search for online across all devices, including mobile devices, and offers useful advice on how to help children behave safely online.