Small business owners looking need to increase productivity and profits need to change their outlook on technology and should even start making use of mobile apps, writes COLIN TIMMIS, SA Head of Accounting, Xero.
According to the Organisation for Economic Co-operation and Development (OECD), labour productivity in South Africa has trended downwards since 2011 – and, in the 47 years between 1967 and 2014, it’s declined by 41%. While this is concerning, it hasn’t hampered
South Africa’s thriving small business community as confidence is running high: according to research recently conducted by Xero and WWW, some 58% of small business owners anticipate growth within the next year.
To drive growth and make immediate, impactful improvements to productivity, small businesses should focus on technology: it plays a crucial role in maximising efficiency and generating profits. It’s encouraging that many South African small businesses already recognise this: 47% consider it “very important”, while 19% go as far as to call it “essential”. However, we still have some way to go, as 26% consider PCs to be necessary business tools, and only 6% consider their internet connection to be crucial. A mere 4% of respondents believe smartphones to be essential – and 10% don’t have one at all.
So if you’re a small business owner looking to increase profits and efficiency, your top priorities should be to rethink your approach to technology and, in particular, consider how mobile apps might revolutionise the way you run your business.
Which apps can help me simplify my business?
40% of South African small businesses rely on paper records and spreadsheets, and research suggests that 88% of these spreadsheets contain errors. When you’re handling sensitive data, it’s important that it’s done quickly and accurately.
The age of the app has given rise to more SME-friendly tools. It’s now possible to automate and consolidate functions like payroll, bookkeeping, training, and marketing – and if you take advantage, you’ll spare yourself a big headache.
Within the mobile Salesforce dashboard, for example, you can manage customer relationships, monitor employee work performance, and send marketing material with Pardot – much easier than logging in and out of several different applications.
What’s the most cost-effective option?
Some 39% of the businesses we surveyed reported cashflow concerns, which have a direct influence on whether or not the business can afford the tools it needs. An increase in labour productivity only matters if you’re making money – which becomes exponentially more difficult if the tech you’re using is unaffordable.
Where enterprise software can be exorbitant on a perpetual license, tools like Slack, CamScanner and Evernote offer unlimited free plans for smaller teams. If you need to scale up, you can usually upgrade to premium for a reasonable monthly fee – significantly cheaper than an outright purchase.
Which apps can give my team more flexibility?
The modern employee demands flexibility, and modern apps can give it to them. Project management software like Trello and Asana make it possible to keep track of individual tasks and assignees, while the cloud-based hosting service of Dropbox allows you to access whatever you need from anywhere across the globe.
What’s more, you don’t lose anything by allowing your employees to work in their preferred way: it actually has a positive effect on their productivity.
That said, adopting technology isn’t just a means of improving labour productivity. It’s a chance for South Africa’s SME community to give itself a shot in the arm. The analogue world is receding further into the distance. We are in the age of the app, the smart device, and the
hot desk. Soon enough, we’ll be in the age of the ‘Internet of Things’.
If small businesses make strategic use of the right apps, they’ll not only improve productivity and profits: they’ll carve out a place for themselves in a bright – and not-so-distant – future.
Smart home arrives in SA
The smart home is no longer a distant vision confined to advanced economies, writes ARTHUR GOLDSTUCK.
The smart home is a wonderful vision for controlling every aspect of one’s living environment via remote control, apps and sensors. But, because it is both complex and expensive, there has been little appetite for it in South Africa.
The two main routes for smart home installation are both fraught with peril – financial and technical.
The first is to call on a specialist installation company. Surprisingly, there are many in South Africa. Google “smart home” +”South Africa”, and thousands of results appear. The problem is that, because the industry is so new, few have built up solid track records and reputations. Costs vary wildly, few standards exist, and the cost of after-sales service will turn out to be more important than the upfront price.
The second route is to assemble the components of a smart home, and attempt self-installation. For the non-technical, this is often a non-starter. Not only does one need a fairly good knowledge of Wi-Fi configuration, but also a broad understanding of the Internet of Things (IoT) – the ability for devices to sense their environment, connect to each other, and share information.
The good news, though, is that it is getting easier and more cost effective all the time.
My first efforts in this direction started a few years ago with finding smart plugs on Amazon.com. These are power adaptors that turn regular sockets into “smart sockets” by adding Wi-Fi and an on-off switch, among other. A smart lightbulb was sourced from Gearbest in China. At the time, these were the cheapest and most basic elements for a starter smart home environment.
Via a smartphone app, the light could be switched on from the other side of the world. It sounds trivial and silly, but on such basic functions the future is slowly built.
Fast forward a year or two, and these components are available from hundreds of outlets, they have plummeted in cost, and the range of options is bewildering. That, of course, makes the quest even more bewildering. Who can be trusted for quality, fulfilment and after-sales support? Which products will be obsolete in the next year or two as technology advances even more rapidly?
These are some of the challenges that a leading South African technology distributor, Syntech, decided to address in adding smart home products to its portfolio. It selected LifeSmart, a global brand with proven expertise in both IoT and smart home products.
Equally significantly, LifeSmart combines IoT with artificial intelligence and machine learning, meaning that the devices “learn” the best ways of connecting, sharing and integrating new elements. Because they all fall under the same brand, they are designed to integrate with the LifeSmart app, which is available for Android and iOS phones, as well as Android TV.
Click here to read about how LifeSmart makes installing smart home devices easier.
Matrics must prepare for AI
By Vian Chinner, CEO and founder of Xineoh.
Many in the matric class of 2018 are currently weighing up their options for the future. With the country’s high unemployment rate casting a shadow on their opportunities, these future jobseekers have been encouraged to look into which skills are required by the market, tailoring their occupational training to align with demand and thereby improving their chances of finding a job, writes Vian Chinner – a South African innovator, data scientist and CEO of the machine learning company specialising in consumer behaviour prediction, Xineoh.
With rapid innovation and development in the field of artificial intelligence (AI), all careers – including high-demand professions like engineers, teachers and electricians – will look significantly different in the years to come.
Notably, the third wave of internet connectivity, whereby our physical world begins to merge with that of the internet, is upon us. This is evident in how widespread AI is being implemented across industries as well as in our homes with the use of automation solutions and bots like Siri, Google Assistant, Alexa and Microsoft’s Cortana. So much data is collected from the physical world every day and AI makes sense of it all.
Not only do new industries related to technology like AI open new career paths, such as those specialising in data science, but it will also modify those which already exist.
So, what should matriculants be considering when deciding what route to take?
For highly academic individuals, who are exceptionally strong in mathematics, data science is definitely the way to go. There is, and will continue to be, massive demand internationally as well as locally, with Element-AI noting that there are only between 0 and 100 data scientists in South Africa, with the true number being closer to 0.
In terms of getting a foot in the door to become a successful data scientist, practical experience, working with an AI-focused business, is essential. Students should consider getting an internship while they are studying or going straight into an internship, learning on the job and taking specialist online courses from institutions like Stanford University and MIT as they go.
This career path is, however, limited to the highly academic and mathematically gifted, but the technology is inevitably going to overlap with all other professions and so, those who are looking to begin their careers should take note of which skills will be in demand in future, versus which will be made redundant by AI.
In the next few years, technicians who are able to install and maintain new technology will be highly sought after. On the other hand, many entry level jobs will likely be taken care of by AI – from the slicing and dicing currently done by assistant chefs, to the laying of bricks by labourers in the building sector.
As a rule, students should be looking at the skills required for the job one step up from an entry level position and working towards developing these. Those training to be journalists, for instance, should work towards the skill level of an editor and a bookkeeping trainee, the role of financial consultant.
This also means that new workforce entrants should be prepared to walk into a more demanding role, with more responsibility, than perhaps previously anticipated and that the country’s education and training system should adapt to the shift in required skills.
The matric classes of 2018 have completed their schooling in the information age and we should be equipping them, and future generations, for the future market – AI is central to this.