No industry will remain undisrupted in 2018 and the years to come. But for African telco providers, who have feasted on near-uninterrupted subscriber and revenue growth over the past two decades, the need to adapt is paramount, writes MARIAM ABDULLAHI, Telco Industry Lead at SAP Africa.
In a market where the average business lifespan is 12 years (compared to 25 years in the last two decades) the objective is not to simply improve that which is already working. African telcos need radical transformation of entire business models in order to become digital supply networks and re-imagine work, resources management, and contingent worker management.
Since the advent of the Internet and the more recent emergence of technologies that include machine learning, IoT, cloud computing, and predictive analytics, businesses with exponential growth models such as Amazon, Uber, Airbnb and MPESA have entirely transformed their industry sectors almost overnight.
Thanks at least in part to these companies, customer expectations have ballooned, with modern consumers demanding personalised, efficient service at low cost and with added convenience. Talented employees have also increasingly gravitated toward these companies, putting further pressure on incumbents who suddenly are outperformed and out-innovated at every turn. “Too big to fail” in today’s market is a near-certain recipe for decline and eventual disaster.
Telco execs heeding the call
Telco executives across Africa and other emerging markets have scrambled to reinvent their business models in the face of shifting customer demands and the arrival of agile, customer-centric competitors. Airtel Africa merged its Ghana operations with Tigo Ghana and sold off operations in Sierra Leone and Burkina Faso to adapt to rapidly changing market conditions. South Africa’s Cell-C is seeking investments into fibre-to-the-home providers to enable its diversification into new service offerings including insurance and media.
Further afield in India, LTE and Voice-over-LTE operator Jio acquired 100 million subscribers in only six months by offering free voice services for life to its customers, prompting a sudden merger between Vodafone India and Aditya Birla Group’s Idea operations to form India’s largest telecoms company.
Kenya’s Safaricom is building on its much-lauded MPESA platform by diversifying into new revenue streams, including Uber competitor Little and e-commerce portal Ma Soko to claim a greater share of its customers’ wallets.
These companies have already felt the effects of declining traditional revenue streams as disruption from the likes of OTT players such as WhatsApp, Skype and YouTube put pressure on what was until recently primary (and highly dependable) sources of revenue. According to PwC, many telco operators globally are seeing revenue drop-offs of as much as 30% in SMS, 20% in international voice, and 15% in international roaming. Incremental improvements and operational changes are no longer enough. Those that can adapt to take advantage of technology megatrends such as hyper connectivity, cloud computing, and IoT are far better placed to reinvent their business models and can further incorporate Software Defined Networks and Network Function Virtualisation to speed up the innovation cycle.
The nature of transformation in 2018
Digital transformation in 2018 is not about cutting costs or optimising existing processes. It is a relook of the entire telco business model. It is asking the hard questions: Am I serving my customers in the right way? Are my operations efficient? Is cost-cutting adequate and sustainable? Am I able to hire the correct staff, attract the best talent, and empower them to contribute to an inclusive and innovation-focused workplace?
Telco executives must ensure their companies’ day-to-day culture drives innovation across the entire business. The aim should be on developing personalised services and to deliver such services in a way to meets the demands of an empowered customer base. The only way to do that is to have access to the correct customer insights – such as data usage and consumption habits, call volumes, area of residence – and to act on such insights in a humane and personalised manner. For this, analytics and data are key, especially when matched to an in-memory computing platform that enables real-time actionable insights.
At a time when telco offerings are highly commoditised and there’s not too much distinguishing one operator from the other, telcos need to simplify their core business operations to allow for the development of a clear unique value proposition for sustainable growth that takes local conditions into account. For example, with so many African countries not yet fully adopting 4G technology, does it truly make sense to invest heavily in emerging 5G technology?
The African telco market has moved away from improvement to large-scale disruption and transformation. Telcos who embark on a process of total business model change underpinned by powerful exponential technologies will be far better placed to withstand and overcome the challenge posed by the new breed of disruptors.
2018 will determine who adapts, maximises on operational efficiencies, leverages innovation for new revenue streams and who relies on old ways of doing businesses that negatively impacts their Go To Market offerings.
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.