The local economic outlook remains challenging. To stimulate and grow the economy, greater entrepreneurship and a new approach to innovation are needed. Digitalisation offers us that opportunity, writes WILLIAM MZIMBA.
In South Africa, there are some tough economic challenges ahead. Unemployment remains high and rating agencies believe that a downgrade of the country’s credit ratings to junk status is still possible at the end of the year. Open innovation through ecosystem expansion could help turn the tide. The evolving digital business environment and business models, supported by new digital technologies, make new and deeper forms of collaboration possible – and greater digital collaboration increasingly correlates with better business and economic performance.
Accenture’s Digital Collaboration Index indicates that digital collaboration can deliver an uplift of $1.5 trillion to global economic outputs. In South Africa, it could raise GDP by almost $12 billion, elevating current GDP by 3.1 percent. So how do we achieve this?
As digital blurs boundaries between industry sectors, lowers barriers to entry and creates bridges, new ecosystems of partners from different industry sectors are forming around the customer, offering them not just products but innovative solutions and ‘experiences’. Many of these partnerships are built on a new form of innovation: open innovation.
What is open innovation?
Open innovation goes beyond narrow-focus first stage innovation such as corporate ventures, incubators and accelerators. It is a more open, equitable form of collaboration involving multiple partners who work together to jointly develop new platforms and applications, enhance core offerings or expand into new markets.
This model provides a catalyst, and the momentum for rapid innovation and growth. It helps enterprises harness the power of entrepreneurs and innovators to bring new ideas, technology and talent into their businesses; and helps start-ups leverage the strengths of bigger players to bring solutions to market and scale up faster.
Accenture has taken this very model and implemented it throughout the company to work with top-tier accelerators, start-ups, venture capitalists, universities and the company’s corporate R&D labs to build and bring to market innovative solutions. Through this connected network Accenture Open Innovation has fuelled new opportunities and growth for pioneering clients.
It’s also a model that has an important role to play specifically in South Africa.
Digital technologies, products and services will play a significant role in revenue generation for South African companies, accounting for almost one-third of total revenues in the next three years. Yet South African companies have been slow to exploit the potential of digital to increase collaboration and innovation – the new platform models that characterise digital age business remain rare and the majority of companies still focus on early-stage innovation models.
The journey to open and ecosystem innovation?
In South Africa, a foundation to facilitate digitally based innovation needs to be built and that foundation needs to extend beyond technology. This will require a mindset change and the establishment of an enterprise framework to facilitate what Accenture terms “guided disruption”.
To put the fundamentals in place for open innovation, companies should:
· Discover: Explore the “art of the possible” and identify potential ecosystem partners, technologies and opportunities that align to clearly defined business goals
· Build the foundation: foster a culture of open innovation and back it with investment, leadership support, incentives and business tools and programmes that facilitate greater external collaboration.
· Develop a bridge: collaborate with people and organisations that can act as a gateway to innovation ecosystems. Organisations and businesses who recognise the power of these connection points will prove instrumental partners.
· Develop and deploy: co-innovation among multiple partners minimises internal investment, allowing for rapid prototyping but the deployment of solutions at scale in a digital ecosystem can be challenging – build the foundation to support this using best practices.
The journey to open innovation will not be easy but, if we get it right, it will enable South African companies to leapfrog the evolutionary stages of innovation to significant advantage. This can bring about an uptick in South Africa’s economic growth and a step change in problem resolution.
* William Mzimba, Chief Executive South and Sub-Saharan Africa at Accenture
Mobile is the new branch
Standard Bank has launched an account for mobile devices that gives back 500MB of data a month
Standard Bank has introducd a R4.95p/m bank account called MyMo that customers can open on their mobile devices, loaded with data and airtime offerings and other benefits such as virtual and Gold physical card.
MyMo account holders will also enjoy the convenience of a cheque account through a Visa and Mastercard gold card. Once the account is open, users can choose to either receive R50 in airtime or 500MB of data a month, if their card is swiped more than four times a month. A further megabyte of data is loaded on the account for every R20 spent.
“MyMo is an account for everyone, whether you just landed your first job or have been around the block. With no documentation required it only takes a few minutes to open the account,” says Funeka Montjane, Chief Executive for Personal and Business Banking, South Africa, at Standard Bank Group. “For just R4.95 a month customer will be able to enjoy free swipes and ATM withdrawals at only R6.50 for amounts under R 1 000.
“Mobile is the new branch. This account is about bringing the mobile branch into customers hands, it is about convenience and security while banking.”
She says mobile offers low cost transactional banking which integrates people and businesses into the new connected economy, making mobile the new branch ecosystem that will drive and connect Africa’s growth. Physical connections to the economy are rapidly changing to digital where banks have to move from being financial institutions to service organisations.
“In the past people congregated in communities and eventually cities to maximise the advantages of connectivity. Today a simple hand-held device has the potential to open infinite doors, transforming individuals’ access to opportunities, regardless of where they are, and like never before in history.
“Historically, a bank account represented access to economic citizenship. Today, having a simple device enabling digital access to a modern banking platform is a passport to global connectivity and vast human development potential.”
The bank says it is using technology, and mobile phones in particular, to deliver low-cost transactional channels accessible to all our customers. The evolution in mobile can be seen in transaction options like cash back at the retail checkout till rather than the ATM, free digital banking rather than using a branch, and the ability to transact using digital wallets, even without a bank account.
“Developing comprehensive connected ecosystems requires a mind-set change from Africa’s banks,” says Montjane. “Banks will evolve away from traditional financial service organisations, into service ecosystems enabling broad universal access to almost everything like enhanced purchasing experiences of vehicles and homes, online procurement of goods and services and lifestyle elements like rewards and travel.
“These connectivity drivers will also act to future-proof evolving connectivity ecosystem by allowing us to offer untold future services while deriving income from as yet unrealised revenue streams,.
From a customer perspective, the kind of ecosystems of knowledge, access and, ultimately, connectivity that banks will come to provide will radically transform the share of life that almost all individuals will be able to access.”
Two-thirds of SA staff hide social media from bosses
With 90% of people in employment going online several times a day, it can be hard for most workers to keep their private and work-life separate during the working day (and beyond). The recently published Global Privacy Report from Kaspersky Lab reveals that 64% of South African consumers choose to hide social media activity from their boss. This secretive stance at work also extends to their colleagues, with 60% of South Africans also preferring not to reveal online activities to their co-workers.
Globally, the average employee spends an astonishing 13 years and two months at work during their lifetime. Interestingly though, not all this time is directly related to solving work tasks or earning a promotion: almost two thirds (64%) of consumers admit visiting non-work-related websites every day from their desk.
Not surprisingly, 35% of South African employees are against their employer knowing which websites they visit. However, more interestingly, 60% of South African are even against their colleagues knowing about their online activities. This probably means that colleagues constitute an even greater threat to future perspectives of an office slouch or maybe the relationships with colleagues are more informal and therefore, more valuable.
On the contrary, social media activity appears to be a less private domain for many and therefore, more suitable for sharing with colleagues but not the boss. This is probably because workers fear harming the public image of a company or interest in decreased staff productivity motivates companies to monitor employees’ social networks and make career changing decisions based on that. Such policies have led to 64% of South Africans saying that they don’t want to reveal their social media activities to their boss and 53% even don’t want to disclose this information to their colleagues.
A further 29% are against showing the content of their messages and emails to their employer. In addition, 3% even said that their career was irrevocably damaged as a consequence of their personal information being leaked. Thus, people are worried about how to build a favourable internal reputation and how not to destroy existing workplace relationships.
“As going online is an integral part of our life nowadays, lines continue to blur between our digital existence at work and at home. And that’s neither good nor bad. That’s how we live in the digital age. Just keep remembering that as an employee you need to be increasingly cautious of what exactly you post on social media feeds or what websites you prefer using at work. One misconceived action on the internet could have an irrevocable long-term impact on even the most ambitious worker’s ability to climb the career ladder of their choice in the future,” comments Marina Titova, Head of Consumer Product Marketing at Kaspersky Lab.
To ensure workers don’t fall prey of the internet threats at a work, there are some core guidelines to adhere to in the digital age:
- Don’t post anything that could be considered defamatory, obscene, proprietary or libellous. If in doubt, don’t post.
- Be aware that system administrators may at least, in theory, be informed about your web browsing patterns.
- Don’t harass, threaten, discriminate or disparage against any colleague, partner, competitor or customer. Neither on social networks or in messages, emails, nor by any other means.
- Don’t post photographs of other employees, customers, vendors, suppliers or company products without prior written permission.
- Start using Kaspersky Password Manager to ensure your social media and other personal accounts are not at risk of unauthorised access by someone else in an office. Install a reliable security solution such as Kaspersky Security Cloud to protect your personal devices.