Many businesses are grappling with the challenges posed by digitalisation as fears mount on the impact on jobs and growth. However, this view overlooks the real economic value that a digital industry will bring, writes WILLIAM MZIMBA of Accenture.
However, this myopic view of the future comes with a significant risk as it overlooks the real economic value that digitally driven industry initiatives will bring to growth, development, jobs and society at large. While research has generally been scarce on exactly what this means in rands and cents, the World Economic Forum launched the Digital Transformation Initiative (DTI) in 2015, in collaboration with Accenture, to maximize opportunities for businesses and society stemming from digital technologies.
Since then the DTI has assessed how digitalization in 13 major industries is transforming business and wider society. This work has brought us into direct contact with more than 1,000 executives, policy makers and experts, who have helped uncover some key themes for ensuring the value of digitalization is captured by both business and society.
Thanks to this initiative it is now possible to more adequately determine how these initiatives can make an extremely positive contribution over the next decade if harnessed early enough.
While embracing something new is always hard to do and a desire to stick to your knitting is only natural, key role players in Africa must realise they are on the cusp of a real game changer and by embracing digital change in a strategic fashion they can leapfrog many legacy problems they face.
It certainly won’t happen overnight but the first step is for business, labour and government to understand the potential and to work together on making changes that matter.
Many are too quick to focus on the negatives as a reason for not taking action – for instance, estimates of global job losses due to digitalization range from 2 million to as high as 2 billion by 2030.
Could it be they have never actually been able to quantify the benefits in their sector? If that is so, a white paper by the World Economic Forum in collaboration with Accenture, throws considerable light on the potential value for industry due to digital transformation. To date, the research has confirmed that digitalization has immense potential: we estimate it could deliver around $100 trillion in value to business and society over the next decade.
There is therefore little doubt DTI represents an immense opportunity for new value creation and lead in the new, often against a backdrop of a stagnating market, regulatory pressures, or changing consumer preferences.
What is urgently needed, however, is a new framework for public-private dialogue, as we are still at the early stages of discovery about the true benefits of DTI. It is no use paying lip service to these realities and far more discussion and input is required from all stakeholders as this journey unfolds.
Breaking down traditional barriers to entry and expansion will be key and our DTI research across the automotive, consumer, electricity and logistics sectors estimates the value of DTI in the region of $8.4 trillion; and value for society of approximately $12.7 trillion, between 2016 and 2025.
Zoning in on a specific industry of critical importance to Africa – electricity – optimizing the grid to manage real-time supply and demand is worth $191 billion for electricity companies, while the value this could deliver to society is three times as much ($623 billion). This is derived from cost savings for customers (offering an incentive to postpone consumption during peak hours), lower fuel emissions and jobs created.
Nothing could be more important in Africa today than making a difference to broader society. The dialogue I mentioned above needs to take numerous realities into account if the benefits are to be realised. For instance, in many instances, digital initiatives are projected to deliver high value to business and society. This means that no intervention is likely needed to realize those benefits – industry has a clear incentive to act of its own accord. For example, omni-channel retail is likely to deliver such huge benefits to industry (estimated at $1.4 trillion) and to society (from a $5 trillion reduction in costs and productivity improvement, amounting to 300 billion hours saved), that there would appear to be little need for policy/regulatory intervention.
However, in logistics the value to society of shared warehousing is equivalent to approximately 500 times the value to industry. In the automotive industry, the value to society of automotive partners agreeing on usage-based insurance to help reduce road deaths, insurance premiums and crash costs is worth approximately 200 times the value to industry. This is where multi-stakeholder collaboration is needed and, potentially, new incentives required to change the direction of the market.
The bottom line is DTI needs to be used to augment and fast track growth, development and education in Africa, but this will require significant buy-in from all stakeholders. That journey needs to start today.
* William Mzimba, Chief Executive of Accenture South Africa and Chairman of Accenture sub-Saharan Africa
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.