Developments in the local ICT sector are beginning to converge, signifying a major change for cloud computing, says KABELO MAKWANE, Managing Director of Accenture Cloud First business in South Africa.
A number of recent developments in the broader information and communication technology (ICT) sector have converged, signifying a massive step change for cloud computing in the country.
Of great importance, has been the aggressive expansion of terrestrial fibre networks across South Africa’s major metros by numerous infrastructure providers, which has given businesses of all sizes, including those in decentralised locations, access to high-speed, uncapped broadband.
The continued roll out of high-speed wireless broadband in the form of 4G, and now 5G in certain areas, has also contributed to an increase in the adoption of basic cloud-based services such as web applications or smaller production systems.
In addition, and somewhat interrelated, is the impact and influence that workforce mobility has had, predominantly the ’bring your own device’ (BYOD) workplace paradigm. This trend is being driven by employees who want to use personal smartphones and tablets to access company networks, and the desire by businesses to improve workforce productivity and efficiency by ensuring on-demand access to applications and mission-critical systems and information.
Finally, in what is potentially the most significant recent development, and undoubtedly marks the tipping point for mainstream cloud adoption locally, Microsoft announced that Microsoft Cloud — including Microsoft Azure, Office 365 and Dynamics 365 — will, from 2018, be delivered from local data centres in Johannesburg and Cape Town.
The arrival of this in-country public cloud infrastructure, coupled with reliable, high-speed, end-to-end fibre access into the Microsoft data centres, means local businesses will soon lead in the New IT with access to a comprehensive cloud solution that answers many of the regulatory issues previously faced with off-shore hosting, such as data sovereignty and security.
Accordingly, Microsoft customers, which predominate business and public sectors, will now be more inclined to consider cloud computing, given the alignment of these factors, and the fact that vendor software licensing models have also evolved to preference cloud-based usage.
And the value proposition of Microsoft’s Azure cloud offering – a flexible, integrated platform that can operate as a full public or hybrid cloud solution, with enormous scalability – is even more enticing for customers that currently run on-premise SAP ERP solutions. Many organisations running legacy ERP systems are in need of an upgrade. They should therefore already be considering the next evolution of their core business systems, which form the heart of their everyday business operations.
If cloud computing in not already part of their next upgrade path, be it a full public solution or a hybrid model, then these companies are failing to grasp the magnitude of recent developments.
Firstly, the on-premise model often does not make business sense, both from a cost and an operational perspective. Cloud computing, on the other hand, enables businesses to leverage the investments, innovations and developments that cloud providers have already made. This negates the need to commit capex, and the considerable time and energy needed to develop standalone, on-premises solutions.
Secondly, many organisations using SAP as their core ERP system are, more than likely, already running specific elements in the cloud, with software-as-a-service solutions such as SAP SuccessFactors for human resources, or SAP Ariba for procurement. And SAP S/4HANA’s capabilities and suitability for cloud platforms as a ‘next generation’ ERP solution are accelerating the need to migrate to the cloud, to gain the flexibility and agility that required by successful businesses in the digital age.
Similarly, new companies or rapidly growing start-ups that are considering large-scale investments into core business systems for the first time are ideally placed to deploy out-of-the-box solutions into the cloud, fully bypassing the onerous on-premise approach, which today makes the most financial and operational sense. This also offers scalability, to facilitate any rate or degree of future growth due to the economies of scale that can be achieved in data centres.
There are also companies that may be in the process of a major ERP implementation, and are busy fine-tuning customisation. During this process they will need to consider how to achieve this in the most cost effective and efficient manner. The application development, testing and commissioning phases require significant computing real estate to succeed, with the public cloud environment is the best placed to facilitate this process in the most cost effective and efficient manner.
Accordingly, whatever position a company may find itself in, the cloud computing discussion currently taking place around boardroom tables needs to shift from a hypothetical debate, to one that seeks to define a strategy for the adoption of cloud computing and the migration of core business systems into the cloud.
Faced with the facts and the cumulative effect of recent develops, there can be little doubt left that for businesses in South Africa, all roads now lead to the cloud. And when it comes to provisioning cloud-based SAP solutions, Accenture believes that Microsoft Azure is a compelling value proposition. It offers cost benefits, and Azure is an open Microsoft platform, enabling greater interoperability with other systems and native integration with a variety of developer tools, including open source variants.
The time has therefore come for businesses to commit to a cloud strategy by first assessing their current core system lifecycle and subsequently developing a roadmap, ideally with a strategic cloud partner that understands every facet of the journey to cloud adoption, from the application assessment and cloud value realisation strategy, cloud transformation and migration, to ultimately cloud management and optimisation.
Smart grids needed for Africa’s utilities
Power utilities across Africa should rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem, says COLIN BEANEY, Global Industry Director for Asset-intensive and Energy and Utilities at IFS.
Africa’s abundant natural resources and urgent need for power mean that it is one of the most exciting and innovative energy markets in a world that is moving rapidly towards clean, renewable energy sources. The continent’s energy industry is taking new approaches to providing unserved and underserved communities with access to power, with an emphasis on smart technologies and greener energy sources.
Power systems are evolving from centralised, top-down systems as interest in off-grid technology grows among African businesses and consumers. And according to PwC, we will see installed power capacity rise from 2012’s 90GW to 380GW in 2040 in sub-Saharan Africa. Power utilities are needing to rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem.
Energy and utilities providers are transforming from centralised supply companies to more distributed, bi-directional service providers. They can only achieve this through the evolution of “smart grids” where sensors and smart meters will be able to provide the consumer with a more granular level of detail of power usage. This shift from an energy supplier to “lifestyle provider” will require a much more dynamic and optimised approach to maintenance and field service.
African companies must thus embrace digital transformation as an imperative. This transformation begins by embracing enterprise asset management to improve asset utilisation. The subsequent steps are enhancing upstream and downstream supply chain management; resource optimisation; introducing enterprise operational intelligence; embracing new technologies such as the Internet of Things, machine learning, and predictive maintenance; and becoming a smart utility.
Embracing mobility to drive ROI
Getting it right is about putting in place an enterprise backbone that accommodates asset and project management, multinational languages and currencies, new energies and markets, visualisation of the entire value chain, and mobility apps. Mobile technologies that support the field workforce have a vital role to play in driving better ROI from utilities’ investments in enterprise asset management and enterprise resource planning solutions.
Today’s leading enterprise asset management solutions feature powerful functionality for mobile management of the complete workflow of work orders – from logging status changes and updates, from receiving and creating new orders to concluding the job and reporting time, material and expenses. Such solutions are easy to deploy and intuitive for end users to learn and use.
Importantly for organisations operating in parts of the continent with poor telecoms infrastructure, connectivity is not an issue. The solutions work offline and synchronises when network connectivity is available. Users can work on any device—laptops, tablets, and smartphones—commercial or ruggedised.
By ensuring that field technicians have easy access to information and processes, the mobile solution enables technicians and maintenance engineers to easily do the following tasks:
· Create a new work order on the fly and log new opportunities
· Access both historical and planned work information when requested
· Permit customers to sign when the job is completed
· Capture measurements and inspection notes on route work orders
· Create new fault reports on routing
· Facilitate documentation through photo capturing
· Provide easy access to technical data and preventive actions.
The power of mobility allows the engineer to be the origin of all data capture on a service event. They can easily inquire on asset history, record parts used or parts needed for repair, record labour hours, and expenses as they occur, and any notes of repairs performed. When coupled with workforce management tools, such solutions unlock significant productivity gains for utilities who are trying to get the most from their workforce and assets.
Brands fall for app vanity
The experience of a mobile screen full of icons, representing independent apps that your need to open to experience them, is making less sense. Instead, businesses should serve customers with an ‘app-like’ experience inside the digital platform they already use, says PIETER DE VILLIERS, Group CEO at Clickatell.
Many brands remain obsessed with creating mobile apps. This not only defies trends that point to increasing consumer app apathy, but can exclude a sizeable portion of your customers in emerging economies. Companies need to engage with their users where they are rather than forcing them onto an app, in what can only be described as brand vanity.
In 2017 there were around 2.2 million apps available in the iOS app store and over 3 million on Google Play. And, while the number of apps being downloaded continues to rise, analysis shows that consumers are only using 30 apps per month and accessing just 9 on a day-to-day basis.
While these numbers still seem attractively high, in reality the majority of the apps we use are for messaging (like Facebook Messenger, WhatsApp, and WeChat) and our social networking, gaming, leisure, dating or utility activities.
Despite the facts, the application strategy as the holy grail for digital transformation is still being pushed even within large progressive brands. What’s more, some advertising agencies and digital consultants are still pushing apps as the best means for companies to connect with their customers. This has resulted in some organisations stubbornly doubling down on app strategies which are simply not showing return on investment (ROI).
It’s not immediately clear to us whether the fascination with apps is a roll-over from long overdue projects or whether brand owners equate a mobile-first strategy with a mobile app. Mobile-first in 2018 means customer first, and therefore embracing chat commerce in order to deliver services with convenience and simplicity in mind.
Why apps won’t win the internet
The problem with apps goes beyond user fatigue. In the first instance, many apps are poorly designed, assuming technical sophistication which may not match reality for the average customer. Poor user interfaces and attempts to provide complex engagement can result in even the best ideas missing their targets due to lack of engagement.
Secondly, we all know that economic realities drive consumer behaviour. In Africa, new mobile phone users typically opt for feature phones over smartphones. With a longer battery life and a much more accessible price point, feature phones still allow for a basic internet connection, chat platforms like WhatsApp, and call and message functionality. In these regions, the cost of an app – even if it’s free – goes far beyond installing it. Constant updates require reliable and cheap access to the internet. For the average phone owner in an emerging market, this can be a serious challenge.
Thirdly, and most importantly, apps must be relevant to their intended market. Frequency of usage is a key measure of relevance.
Apps which are used on a daily basis, like health and fitness trackers, enjoy constant engagement. New features which are added are eagerly awaited by users who are happy to update their apps.
However, users may well question the relevance of the app if they are required to conduct updates on a monthly or even weekly basis when they are only making use of the app once or twice a year.
On average, I download one app per quarter. Some I use more frequently than others, but all of these apps need to be regularly updated to maintain security, update features, and fix bugs. Many apps are pushing out updates much more frequently. I noticed over the past year that I could go from having all apps updated, to 32 apps requiring an update in five days.
When it comes to a customer-first digital strategy, companies should be asking themselves if an app is really the best way to reach their target audience.
In fact, at the end of 2016, Gartner predicted that by 2019, 20 percent of brands would ditch their mobile app. What’s more, in its 2018 predictions, the company forecast that by 2021, more than 50 percent of corporations would spend more per annum on bots and chatbots than on mobile app development.
So, we need to ask, what is the alternative for CIOs, CDOs, CMOs, and digital leaders who are looking for ways to reach, retain and grow their customer base?
The logical app alternative
The old battle advice goes: fight your enemy where they are not. Military strategists agreed that having your enemy come to you and fight you on your own terms was preferable. In a world where customers have access to thousands of offerings and millions of deals online, we need to flip that idea to Meet Your Customers Where They Are.
Any marketeer will tell you just a how difficult it is to drive app downloads. Development, cross platform testing and user interface aside, the marketing campaign required to get customers to download the app can swallow entire annual budgets and still come up short.
Looking at the facts, it makes infinitely more sense to work within the digital platforms already being used by your target audience.
Clickatell is already enabling chat commerce for some of the leading global brands with its Touch solution. This allows organisations to serve their customers with an ‘app-like’ experience inside the chat or browser platform of their customer’s choice (Twitter, Facebook Messenger, etc.)
Brands can now send an actionable Touch link such as ‘find the nearest ATM’ or ‘reset my password’ within a chat stream that will open an intuitive touch card without the user having to download an app to perform the action. Services can also be linked to the in-app experience for brands not looking to abandon their app efforts.
Working with our clients, many of whom are global innovators and thought leaders, we’ve found that having the courage to design with an ‘end user first’ approach and dealing with the back-end complexity behind the scenes results in cost efficient customer delight and ROI.