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Prepare for platform economy

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Many companies have already taken steps to embed themselves into digital ecosystems. But, the pace of adopting new digital platforms for doing business needs to increase – especially in Africa, says WILLIAM MZIMBA, Chief Executive of Accenture South Africa.

These platforms are business models that create value by facilitating exchanges between two or more interdependent groups, usually consumers and producers.

According to the Wall Street Journal platform companies are major drivers of innovation as the top companies set the standards for the digital transformation taking place around the world. Traditional companies are challenged to keep up or risk being left behind. As platforms become the new normal for how business is done, African companies must seize this opportunity to begin to build a new digital value chain.

Already, more than a quarter (27%) of the executives Accenture recently surveyed report that digital ecosystems are transforming the way their organizations deliver value. And we found that 81% of executives say platform-based business models will be core to their growth strategy within three years. The mandate for leaders is to capitalize on new relationships, building a network of digital partners that will not only enhance their existing business, but also allow them to forge their way into newly emerging digital ecosystems.

What we are seeing is that entire ecosystems of customers are aggregating around several new digital platforms, and businesses are more motivated than ever before to take advantage of these entry points. Communication platforms like WeChat and WhatsApp, and Artificial Intelligence intermediaries like the Google Assistant, Alexa, and Siri represent distinct ecosystems delivering unprecedented access to customers – and businesses are flocking to them.

A couple of examples include Hyatt Hotels, which uses Facebook Messenger to let guests do everything from booking and checking existing reservations to ordering room service during a stay, while Capital One bank developed a ‘skill’ for Amazon Echo’s Alexa, allowing people to check their accounts and pay credit card bills via the Echo device.

It is little surprise that the trend two of our Tech Vision 2017 study highlights that in the State of the Cloud survey 95% of respondents reported using public, private, or hybrid cloud technology, while the CIO Strategic Partner Index run by the IDC reports that 29% of IT leaders are spending more than half their IT budget on external providers. Each platform commitment means easier future engagement with other companies on the platform using the same infrastructure.

However, of the 176 platform companies included in a recent report, The Rise of the Platform Enterprise: A Global Survey led by Peter Evans and Annabelle Gawer and sponsored by the Center for Global Enterprise, Asia has the largest number with 82, 64 of which are in China. North America has 64, with 63 in the US. Europe is a major consumer of platform services, but its home to relatively few platform companies –27 spread across 10 countries, 9 of which are in the UK. It is concerning Africa and Latin America have a number of small platform companies, only 3 of which have met the $1 billion valuation threshold for inclusion in the survey.

More African companies need to decide which ecosystems to join and which roles to play as the technology changes are only the beginning.

How do African companies begin to close the gaps? An important way to get moving on this journey is to conduct an audit identifying how many internal and external platforms you are using and the goals for their use. Identify and address unnecessary overlaps. Determine the platforms your organization most relies on, as well as those that most depend on you.

These are the ecosystems where your organization should hold its strategic and market strengths. Over the next 100 days, look to essentially develop a comprehensive strategy to establish the foundation for your platform business model and ecosystem. During this phase you should appoint a C-suite sponsor to oversee a team that is responsible for championing your new ecosystem and digital partnership strategies. Then over the next year, leadership should have achieved comprehensive understanding of the new rules of business, developed a platform business model strategy, and started to test it with the launch of a small pilot program.

Companies should keep expanding the conversation: for instance, in the first 100 days have a strategy summit with your closest partners to understand their goals for the future. Uncover shared goals and commit to developing a strategic plan for achieving them together.

Consider your organization’s future through the lens of the biggest disruptions shaping your market, from inside and outside your industry. Craft the ideal role of your company in this future, and develop a shortlist of partners who can help make it a reality. And remember to develop metrics to quantify the results of ecosystem participation.

Many global brands are already taking the bold steps needed. The digital ecosystem is, for instance, totally redefining what automakers do. Rather than just building cars, they’re engaging with customers throughout the vehicle lifecycle, directly managing software upgrades, diagnostics, and safety. In the insurance industry, pulling down driving data from connected car platforms has enabled new services such as pay-per-mile insurance with newcomers like Google and Metromile to challenge the industry status quo. The opportunities are endless, no matter what industry you are in.

General Motors kicked off 2016 with a $500 million investment into ride-share platform Lyft. The move gave GM the inroads to launch their Express Drive service, an exclusive offering for successful, but car-less, Lyft driver applicants to rent a car directly from GM and get to work right away. The program was remarkably successful in the short term, opening a new line of business for GM: by July, 30% of new Lyft drivers were requesting an Express Drive vehicle in their sign-up. In addition to partnering with Lyft, GM also made a $1 billion-plus acquisition of the autonomous vehicle software company Cruise Automation, and another billion-dollar investment in building an autonomous vehicle testing facility in Detroit.

This shows how platforms are rapidly becoming the central hubs for the rich and complex digital ecosystems that companies want to access. Consider the fact that 70% of ’unicorn’ startups (over $1 billion) are platform companies. Other companies such as personal car-rental app Turo and group dining experience Feastly have introduced their own offerings, as have dozens of start-ups, each with their own angle and offering. LiquidSpace, which lists offerings in more than 500 cities across the US, Australia and Canada, offers a platform for renting workspaces and meeting rooms by the day or hour.

In South Africa, a good example of a company embracing the platform economy and reaping rewards is Discovery Vitality, while Discovery’s proposed bank is another example of the evolution of this concept into other exciting sectors. The retail market for consumer goods in SA received a shot in the arm in 2015 when Kalahari was merged with Takealot, with the technology platform cleverly harnessed to drive growth since then.

Remember the sharing economy brings people together through technology to exchange or rent access to goods and services, so entrepreneurs are building this economy by leveraging emerging digital technologies to meet customer needs in new and disruptive ways.

Digital and mobile technologies have combined with public support to create a host of opportunities to transform the way government manages the infrastructure it has already acquired. For instance, through MuniRent, six local governments in Michigan are already renting equipment to and from each other.

How African companies and governments react to this change brought about the platform economy will define their prospects going forward. The platforms they use will serve as the pathways to the new digital economies that will drive growth and jobs across the continent. They will form the pillars of entire value chains in the future and so African companies need to ensure they make these decisions wisely – and fast because there is no doubt that the digital partnerships African companies make today will determine how successful they will be tomorrow.

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Low-cost wireless sport earphones get a kickstart

Wireless earphone brands are common, but not crowdfunded brands. BRYAN TURNER takes the K Sport Wireless for a run.

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As wireless technology becomes better, Bluetooth earphones have become popular in the consumer market. KuaiFit aspires to make them even more accessible to more people through a cheaper, quality product, by selling the K Sport Wireless Earphones directly from its Kickstarter page

KuaiFit has an app by the same name which offers voice-guided personal training services in almost every type of exercise, from cardio to weight-lifting. A vast range of connectivity to third-party sensors is available, like heart rate sensors and GPS devices, which work well with guided coaching. 

The app starts off with selecting a fitness level: beginner, intermediate and advanced. Thereafter, one has the ability to connect with real personal trainers via a subscription to its paid service. The subscription comes free for 6 months with the earphones, and R30 per month thereafter. 

The box includes a manual, a USB to two USB Type B connectors, different sized soft plastic eartips and the two earphone units. Each earphone is wireless and connects to the other independently of wires. This puts the K Sport Wireless in the realm of the Apple Earpods in terms of connection style. 

The earphones are just over 2cm wide and 2cm high. The set is black with a light blue KuaiFit logo on the earphone’s button. 

The button functions as an on/off switch when long-pressed and a play/pause button when quick-pressed. The dual-button set-up is convenient in everyday use, allowing for playback control depending on which hand is free. Two connectivity modes are available, single earphone mode or dual earphone mode. The dual earphone mode intelligently connects the second earphone and syncs stereo audio a few seconds after powering on. 

In terms of connectivity, the earphones are Bluetooth 4.1 with a massive 10-meter range, provided there are no obstacles between the device and the earphones. While it’s not Bluetooth 5, it still falls into the Bluetooth Low Energy connection category, meaning that the smartphone’s battery won’t be drastically affected by a consistent connection to the earphones. The batteries within the earphones aren’t specifically listed but last anywhere between 3 and 6 hours, depending on the mode. 

Audio quality is surprisingly good for earphones at this price point. The headset style is restricted to in-ear due to its small design and probable usage in movement-intensive activities. As a result, one has to be very careful how one puts these earphones, in because bass has the potential of getting reduced from an incorrect in-ear placement. In-ear earphones are usually notorious for ear discomfort and suction pain after extended usage. These earphones are one of the very few in this price range that are comfortable and don’t cause discomfort. The good quality of the soft plastic ear tip is definitely a factor in the high level of comfort of the in-ear earphone experience.

Overall, the K Sport Wireless earphones are great considering the sound quality and the low price: US$30 on Kickstarter.

Find them on Kickstarter here.

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Taxify enters Google Maps

A recent update to Taxify now uses Google Maps which allows users to identify their drivers, find public transport and search for billing options.

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People planning their travel routes using Google Maps will now see a Taxify icon in the app, in addition to the familiar car, public transport, walking and billing options.

Taxify started operating in South Africa in 2016 and as of October 2018 operates in seven South African cities – Johannesburg, Ekurhuleni, Tshwane, Cape Town, Durban, Port Elizabeth and Polokwane.

Once riders have searched for their destination and asked the app for directions, Google Maps shares the proximity of cars on the Taxify platform, as well as an estimated fare for the trip.

If users see that taking the Taxify option is their best bet, they can simply tap on the ‘Open app’ icon, to complete the process of booking the ride. Customers without the app on their device will be prompted to install Taxify first.

This integration makes it possible for users to evaluate which of the private, public or e-hailing modes of transport are most time-efficient and cost-effective.

“This integration with Google Maps makes it so much easier for users to choose the best way to move around their city,” says Gareth Taylor, Taxify’s country manager for South Africa. “They’ll have quick comparisons between estimated arrival times for the different modes of transport, as well as fares they can expect to pay, which will help save both time and money,” he added.

Taxify rides in Google Maps are rolling out globally today and will be available in more than 15 countries, with South Africa being one of the first countries to benefit from this convenient service.

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