Technology is driving change at a rapid rate and business leaders are constantly being warned about digital disruption, but there is an enormous opportunity for organisations that are willing to digitally transform, says MARK GESCHKE, CEO of Xuviate.
According to a study by Capgemini Consulting and MIT Sloan, large enterprises that committed deeply to digital transformation were on average 50 percent more profitable than companies that were only in the starting blocks of their transformation.
Considering that there are so many technology driven start-ups that begin small and show huge success in no time, there is no reason to believe that mid-sized businesses would not see similar successes.
Mark Geschke, CEO of the digital transformation company Xuviate, points to Relevant IT as the solution to digital transformation. “Relevant IT is a methodology developed specifically for SMEs to provide a clear, actionable roadmap of the developmental steps that need to be taken to rapidly increase the digital business DNA.”
Key to this methodology is the understanding that information technology holds the promise to add significant business value along four different dimensions. Xuviate coined this ‘The 4 Value Propositions of IT’.
Geschke says to unlock the promise of each Value Proposition, old skills have to be brushed off and new skills need to be acquired. “A breakthrough of our methodology is that we have not only been able to identify the 15 most important business technology competencies we need to master, but also prioritised them in the exact order they should be worked on.”
Digital transformation should be seen as a way of doing things, creating value at the new frontiers of the business world, creating value in the processes that execute a vision of customer experiences, and building foundational capabilities that support the entire structure.
As with most maturity frameworks, organisations aim to get as high up the ladder as possible in the shortest amount of time. Transitioning from one level to the next usually requires major mind-set changes, but is usually accompanied by significant increases in productivity and business value gained from IT investments.
Digital businesses create value for themselves by effectively harnessing modern technology and focusing intensely on improving customer experiences across all points of interaction. They achieve this by systematically upgrading their IT maturity through the Value Propositions of IT.
Relevant IT ensures a well-managed IT platform with appropriate supporting IT processes and if delivered well, IT costs are under control and the business users can generally depend on the platform to be available, as and when they need it.
After having established a reliable and cost-effective IT platform, the framework addresses automation and optimisation of business processes across the organisation.
“Once the low-hanging fruit of business processes optimisation have been sufficiently exploited, new opportunities open up to leverage technology expertise and differentiate in the market. Coming in the form of marketing or product innovations and usually involves significant step-changes that improve the overall competitiveness of the organisation,” says Geschke.
Organisations that have reached the highest level of maturity understand that technology provides an effective toolkit for continuously reinvention at the business model level.
“There is a gold-mine of opportunities waiting for service providers who realise that most mid-sized businesses are clamouring for customised solutions to support them on their digital transformation journey,” he concludes.
Rain, Telkom Mobile, lead in affordable data
A new report by the telecoms regulator in South Africa reveal the true consumer champions in mobile data costs
The latest bi-annual tariff analysis report produced by the Independent Communications Authority of South Africa (ICASA) reveals that Telkom Mobile data costs for bundles are two-thirds lower than those of Vodacom and MTN. On the other hand, Rain is half the price again of Telkom.
The report focuses on the 163 tariff notifications lodged with ICASA during the period 1 July 2018 to 31 December 2018.
“It seeks to ensure that there is retail price transparency within the electronic communications sector, the purpose of which is to enable consumers to make an informed choice, in terms of tariff plan preferences and/or preferred service providers based on their different offerings,” said Icasa.
ICASA says it observed the competitiveness between licensees in terms of the number of promotions that were on offer in the market, with 31 promotions launched during the period.
The report shows that MTN and Vodacom charge the same prices for a 1GB and a 3GB data bundle at R149 and R299 respectively. On the other hand, Telkom Mobile charges (for similar-sized data bundles) R100 (1GB) and R201 (3GB). Cell C discontinued its 1GB bundle, which was replaced with a 1.5GB bundle offered at the same price as the replaced 1GB data bundle at R149.
Rain’s “One Plan Package” prepaid mobile data offering of R50 for a 1GB bundle remains the most affordable when compared to the offers from other MNOs (Mobile Network Operators) and MVNOs (Mobile Virtual Network Operators).
“This development should have a positive impact on customers’ pockets as they are paying less compared to similar data bundles and increases choice,” said Icasa.
The report also revealed that the cost of out-of-bundle data had halved at both MTN and Vodacom, from 99c per Megabyte a year ago to 49c per Megabyte in the first quarter of this year. This was still two thirds more expensive than Telkom Mobile, which has charged 29c per Megabyte throughout this period (see graph below).
Meanwhile, from having positioned itself as consumer champion in recent years, Cell C has fallen on hard times, image-wise: it is by far the most expensive mobile network for out-of-bundle data, at R1.10 per Megabyte. Its prices have not budged in the past year.
The report highlights the disparities between the haves and have-nots in the dramatically plummeting cost of data per Megabyte as one buys bigger and bigger bundles on a 30-day basis (see graph below).
For 20 Gigabyte bundles, all mobile operators are in effect charging 4c per Megabyte. Only at that level do costs come in at under Rain’s standard tariffs regardless of use.
Qualcomm wins 5G as Apple and Intel cave in
A flurry of announcements from three major tech players ushered in a new mobile chip landscape, wrItes ARTHUR GOLDSTUCK
Last week’s shock announcement by Intel that it was canning its 5G modem business leaves the American market wide open to Qualcomm, in the wake of the latter winning a bruising patent war with Apple.
Intel Corporation announced its intention to “exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices”.
Intel said it would also continue to invest in its 5G network infrastructure business, sharpening its focus on a market expected to be dominated by Huawei, Nokia and Ericsson.
Intel said it would continue to meet current customer commitments for its existing 4G smartphone modem product line, but did not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020. In other words, it would no longer be supplying chips for iPhones and iPads in competition with Qualcomm.
“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realise the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”
The news came immediately after Qualcomm and Apple issued a joint announced of an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm, along with a six-year license agreement, and a multiyear chipset supply agreement.
Apple had previously accused Qualcomm of abusing its dominant position in modem chips for smartphones and charging excessive license fees. It ordered its contract manufacturers, first, to stop paying Qualcomm for the chips, and then to stop using the chips altogether, turning instead to Intel.
With Apple paying up and Intel pulling out, Qualcomm is suddenly in the pound seats. It shares hit their highest levels in five years after the announcements.
Qualcomm said in a statement: “As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio.”
Meanwhile, Strategy Analytics released a report on the same day that showed Ericsson, Huawei and Nokia will lead the market in core 5G infrastructure, namely Radio Access Network (RAN) equipment, by 2023 as the 5G market takes off. Huawei is expected to have the edge as a result of the vast scale of the early 5G market in China and its long term steady investment in R&D. According to a report entitled “Comparison and 2023 5G Global Market Potential for leading 5G RAN Vendors – Ericsson, Huawei and Nokia”, two outliers, Samsung and ZTE, are expected to expand their global presence alongside emerging vendors as competition heats up.