No industry will remain undisrupted in 2018 and the years to come. But for African telco providers, who have feasted on near-uninterrupted subscriber and revenue growth over the past two decades, the need to adapt is paramount, writes MARIAM ABDULLAHI, Telco Industry Lead at SAP Africa.
In a market where the average business lifespan is 12 years (compared to 25 years in the last two decades) the objective is not to simply improve that which is already working. African telcos need radical transformation of entire business models in order to become digital supply networks and re-imagine work, resources management, and contingent worker management.
Since the advent of the Internet and the more recent emergence of technologies that include machine learning, IoT, cloud computing, and predictive analytics, businesses with exponential growth models such as Amazon, Uber, Airbnb and MPESA have entirely transformed their industry sectors almost overnight.
Thanks at least in part to these companies, customer expectations have ballooned, with modern consumers demanding personalised, efficient service at low cost and with added convenience. Talented employees have also increasingly gravitated toward these companies, putting further pressure on incumbents who suddenly are outperformed and out-innovated at every turn. “Too big to fail” in today’s market is a near-certain recipe for decline and eventual disaster.
Telco execs heeding the call
Telco executives across Africa and other emerging markets have scrambled to reinvent their business models in the face of shifting customer demands and the arrival of agile, customer-centric competitors. Airtel Africa merged its Ghana operations with Tigo Ghana and sold off operations in Sierra Leone and Burkina Faso to adapt to rapidly changing market conditions. South Africa’s Cell-C is seeking investments into fibre-to-the-home providers to enable its diversification into new service offerings including insurance and media.
Further afield in India, LTE and Voice-over-LTE operator Jio acquired 100 million subscribers in only six months by offering free voice services for life to its customers, prompting a sudden merger between Vodafone India and Aditya Birla Group’s Idea operations to form India’s largest telecoms company.
Kenya’s Safaricom is building on its much-lauded MPESA platform by diversifying into new revenue streams, including Uber competitor Little and e-commerce portal Ma Soko to claim a greater share of its customers’ wallets.
These companies have already felt the effects of declining traditional revenue streams as disruption from the likes of OTT players such as WhatsApp, Skype and YouTube put pressure on what was until recently primary (and highly dependable) sources of revenue. According to PwC, many telco operators globally are seeing revenue drop-offs of as much as 30% in SMS, 20% in international voice, and 15% in international roaming. Incremental improvements and operational changes are no longer enough. Those that can adapt to take advantage of technology megatrends such as hyper connectivity, cloud computing, and IoT are far better placed to reinvent their business models and can further incorporate Software Defined Networks and Network Function Virtualisation to speed up the innovation cycle.
The nature of transformation in 2018
Digital transformation in 2018 is not about cutting costs or optimising existing processes. It is a relook of the entire telco business model. It is asking the hard questions: Am I serving my customers in the right way? Are my operations efficient? Is cost-cutting adequate and sustainable? Am I able to hire the correct staff, attract the best talent, and empower them to contribute to an inclusive and innovation-focused workplace?
Telco executives must ensure their companies’ day-to-day culture drives innovation across the entire business. The aim should be on developing personalised services and to deliver such services in a way to meets the demands of an empowered customer base. The only way to do that is to have access to the correct customer insights – such as data usage and consumption habits, call volumes, area of residence – and to act on such insights in a humane and personalised manner. For this, analytics and data are key, especially when matched to an in-memory computing platform that enables real-time actionable insights.
At a time when telco offerings are highly commoditised and there’s not too much distinguishing one operator from the other, telcos need to simplify their core business operations to allow for the development of a clear unique value proposition for sustainable growth that takes local conditions into account. For example, with so many African countries not yet fully adopting 4G technology, does it truly make sense to invest heavily in emerging 5G technology?
The African telco market has moved away from improvement to large-scale disruption and transformation. Telcos who embark on a process of total business model change underpinned by powerful exponential technologies will be far better placed to withstand and overcome the challenge posed by the new breed of disruptors.
2018 will determine who adapts, maximises on operational efficiencies, leverages innovation for new revenue streams and who relies on old ways of doing businesses that negatively impacts their Go To Market offerings.
Here is 2019’s tech
From AI to flexible displays, this is the tech that will shape 2019, writes CY KIM, MD of LG SA
2018 was incredibly exciting for the technology sector which has seen myriad advancements. These include the fundamentals of artificial intelligence (AI) being established, robots helping around the house and consumer electronic innovations such as TVs that are so thin, they might be mistaken for windows, or paintings.
2019 promises to be another significant year as people’s attitudes are changing and technology becomes embedded in our lives. Smart electronics manufacturers will ensure their plans for the future match evolving consumer needs with suitable technology.
We take a look at the biggest innovations for 2019 from AI to lightning-fast internet speeds and flexible viewing surfaces, and we shed some light on how these evolving technologies will impact on how we live and work.
AI will come of age
AI has experienced a marked increase in investments and according to Forbes, 80% of enterprises are investing in AI while 30% are planning to expand their AI investments in the next three years. It’s estimated that during 2017, venture, corporate and seed investors put about $3.6-billion into AI and machine learning companies.
This investment trend has given rise to innovation in deep learning products that have the potential to change the world for the better.
Yes, AI has been around since the 1950s, but its consumer benefits weren’t visible until recently and 2019 will be the year when AI starts to really take off and become a necessity, not just in the home, but in every facet of our lives.
The potential of AI is endless as this technology goes into everything from small watches to cars and even gigantic, connected smart cities. AI is also starting to find its way into TVs, washing machines, refrigerators, speakers, mobile phones and even air cons as products adapt to human behaviour.
Lightning-fast internet speeds
Faster internet speeds enable quicker response times for business tools that we all rely on to get the job done. It will increase the efficiency of workers and will provide reliable communication tools for companies that rely on remote workers.
Given that the so-called gig economy has grown exponentially in recent years, the expectation is that the evolving workforce will contain a higher percentage of employees, or contractors who do not work in a central office.
5G has the potential to change the world the way the internet did a few decades ago. The fifth generation of wireless technology will take internet connectivity to a new level as the internet of things (IoT), will bring about the potential for everything to be connected to everything.
However, 5G is not just about faster internet speeds. It will create new possibilities in numerous sectors, including medicine, transportation and manufacturing.
A smarter world through IoT and AI isn’t possible without 5G’s speed and capacity as the system is able to carry large numbers of connections simultaneously, and is therefore crucial to the development of smart cities, autonomous cars and smart homes.
Life-enriching smart technology
Much like technological innovations, consumer habits and preferences are changing drastically when it comes to home appliances and particularly, home entertainment.
Most consumers believe that advancements in home entertainment tech is life-enriching and that their life is better with the latest tech at their fingertips as it allows them to stay indoors and enjoy quality time with friends and family.
The value of home entertainment tech lies in how it allows loved ones to share experiences, thereby bringing them closer together, particularly during big events such as major sporting events and holiday celebrations.
The potential of flexible viewing surfaces will not only change home entertainment, but also marketing techniques in shopping malls, city centres and shop fronts. With the ability to curve around any environment, this technology creates the perfect platform for signage and consumer engagement that stands out from the crowd.
LG Electronics is an established market leader in innovation and has already started to incorporate these futuristic technologies into its products, which are designed to make consumers lives more convenient. We will continue to release amazing products that utilise smart tech to connect with consumers while staying ahead of the evolutionary curve.
AI will power IoT
A simple gesture. A world built from accessible assets that drive human convenience and interaction. This is the future that’s powered by the Internet of Things (IoT) and artificial intelligence (AI), two of the planet’s hottest topic trends right now for a very good reason. They work, says PHATHIZWE MALINGA, managing director of SqwidNet.
They are also the fuel driving digital transformation in 2019. These are the technologies revolutionising performance, process and productivity. They are also transforming industry challenges across agriculture, retail, health and the public sector and are set to continue on this path well into 2019.
IoT has become the central nervous system of technology, allowing users to make intelligent decisions without feeling overwhelmed by choice or technology. Its ability to make life easier on every level – business, consumer, public sector – is the next step of the IoT evolution as it improves quality of life using AI and machine learning to analyse past behaviour and the insights it gleans to change the future.
This is the vision of the perfect IoT and AI future. The two technologies so intertwined and connected that they are influencing one another’s growth, development and adoption. IoT provides the ability to generate data from the changing circumstances of an asset and the infrastructure required to transport that data to where it can be accessed and analysed. Considering the sheer volume of data generated, it is impossible for a human being to analyse it at the speed required for real-time decision making. And this is why AI has become so important.
Today, it is possible to write code that can read the data generated by IoT and identify meaningful patterns at the right speed. This code can also be written in such a way that it can learn from the results it found the last time it ran. It is code that can learn, an algorithm that can self-educate. In this way, AI requires the power of IoT to generate the data it needs to learn and IoT needs AI to ensure that this data can be made meaningful, in time.
Over the next six to 12 months, it is very likely that the potential of IoT will see numerous small players emerge across all industries. They will be focused on servicing those who have yet to experience the full benefits of IoT and they will use technology to deliver solutions that are just ‘good enough’. This could potentially see the more established players being disrupted but most will likely be using the same technology to innovate and to create solutions that don’t just meet customer expectations but transcend them. Of course, there will be some companies that will remain complacent and they will be the ones battling for customer attention out on the IoT playing field with the small, fresh players.
While on the topic of the customer, the next year is likely to introduce a lot more variety and scalability. The consistent drop in the cost of technology will allow for more choice in solution and capability and this will have a knock-on effect with regards to quality of life and the choices customers make when it comes to solution and service provider.
On the business frontier, the growth of IoT and AI offer an interesting bouquet of choices and opportunities. They allow for investment into solutions that generate better insights that, in turn, generate better products and services. Organisations that ignore this potential or think they can sidle on past what IoT and AI bring to the business are likely to be the ones that are left behind. It’s a cliché for a reason. A single look back at the companies that have emerged as big players in industries previously perceived as impenetrable proves the point. Innovation isn’t optional, it’s an essential part of business DNA and both IoT and AI are critical parts of the ability to innovate at speed, with relevance, and on time.