A recent survey has revealed that Africans check their phones on average every five minutes, many of them doing so on public transport, creating an ideal platform for businesses to evolve their value through sophisticated data analysis.
More than 33% of Africans check their phones every 5 minutes and more than half of smartphone users regularly use their devices on public transport, at work and while shopping.
This is opening the door for savvy businesses to provide a “platform for life” that evolves its value through sophisticated data analytics.
The latest edition of the Game of Phones Survey, released by the Technology, Media and Telecommunications (TMT) industry unit at Deloitte and which canvassed over 5,000 respondents across Africa, highlights that more than a billion glances are taking place on smartphones in Africa every day – with over one third checking their phones every five minutes. “This must mean something for businesses as it is clear smartphones are becoming ever more embedded in our lives. Usage indicates a serious shift away from just information and communication to virtually everything – from how we consume media, to banking, purchasing and gaming, for example,” says Mark Casey, Global Media and Entertainment Leader at Deloitte Global.
The research also found that more than half of Africa’s mobile users check their devices within five minutes of waking up and before going to bed. The report indicates that across all markets including South Africa, consumers are most active on their devices when making use of public transport. A smaller proportion of those surveyed reported that they used their mobile device for services such as insurance, healthcare and home security. Increasingly, mobile devices are being used across the region for financial services with the traditional banking models being constantly challenged via mobile technology.
“Such disruptive technology, especially with the traditional services sectors such as banking and finance, has the potential to be a game changer in that it allows for the previously unbanked to now be an active part for the broader economy, thus ensuring a more positive outcome in broadening economic participation among locals,” says Casey.
Arun Babu, Telecommunications Sector Leader at Deloitte, says businesses around the world are already going through a “transformation journey” to improve the way they harness digital disruption, but new trends require ongoing rethinking of business models.
“Users are looking for an increased range of services that are provided reliably and at speed in a brand-neutral continent. It is important that businesses understand the implications of this in order to achieve brand loyalty across a broad range of customers. It is clear consumers are not married to any component as they increasingly seek unified capability,” he says.
While mobile service providers and device manufacturers will need to enhance functionality to remain competitive, future business models in Africa generally need to be positioned for the reality of greater smartphone penetration.
The survey finds that Africa continues to experience huge growth in data usage, with consumers choosing smarter devices as they provide them with multiple functions in one.
While mobile internet remains dominant, Wi-Fi and fibre is growing albeit it is seen as “the dark horse”.
“Faster access speeds, cheaper connectivity and device centric content translates into an explosion of data consumption in both SA and Nigeria. This increase is driven mainly by the growth in Wi-Fi and fibre across the region,” says Babu.
When compared to South Africa and Nigeria, smartphone penetration in Kenya and Uganda remains fairly low given their rural demographic. However, 54% of South Africans use their smartphones to watch short videos compared to 52% of Nigerians whereas 28% of South African stream music compared to 25% of Nigerians.
The survey identifies coverage and speed of voice and data network as the most critical factors when choosing a network operator, followed closely by customer service and price and value for money. SA consumers are mostly influenced by price and service reliability which are often key factors when deciding to either change or stay with the service provider while consumers in other markets make decisions based on service reliability and availability.
“As connectivity in the region improves, consumers are given more choice in terms of smartphone networks and operators. This translates into a savvier consumer who is constantly on the lookout for better service and is more aware in terms of pricing of products and value for money service,” says Babu.
Device type ownership also varies fairly significantly across the regions surveyed, with the common theme across markets being multi-device ownership. Aspirational purchases will be a key factor in driving up sales of smartphones with factors such as increased rural urban migration and the emergence of an emerging middle class also contributing to the growth in sales of smart devices.
South Africa remains a multi-device market more consistent with developed markets followed closely by Nigeria. SA remains the strongest in terms of multi device ownership with more than half of users owning a smartphone, laptop and tablet. Feature phones tend to dominate the more rural markets of Kenya and Uganda, however, smartphones are expected to experience substantial growth driven by stronger economic growth, increase in internet penetration and investment in mobile data networks.
These changes mean more and more African consumers are living “in the app”, opening a gap for new business models.
“There is, for example, an opportunity for multinational organisations to build new business models that create value by essentially giving away what they used to sell. This is because the competitive advantage of providing ‘more for less’ is being eroded daily to such an extent that all that remains is a world of ‘free assets’. There is room to take centre stage with a ‘platform for life’ that handles information, education, entertainment, purchases and financial services in one place and which keeps evolving through sophisticated data analytics,” concludes Casey.
New iPhone pricing for SA
The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.
|iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,
Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
Accenture opens Fjord design centre in Johannesburg
Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.
The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.
The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.
Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”
Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.
Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands.
Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.
“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”
“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”