Companies perusing new opportunities also need to assume a corporate responsibility as those who compete in these areas will agree to be bound by rules, says HANS ZACHAR, MD for Technology Strategy at Accenture in SA.
As pioneering companies pursue boundary-breaking opportunities, they must assume a new corporate responsibility. The concept of trust and good corporate citizenship will increasingly come to the fore as those who willingly compete in these new and exciting areas willingly agree to be bound by rules, or lose their ability to play on the stage if they do not.
About 65% of IT and business executives surveyed in the Tech Vision 2017 report believe that regulations in their industry have not been able to keep up with the pace of technology advancement. There is little doubt that new age entrepreneurs will continue to move faster than legislators.
Some form of self-regulation appears inevitable if progress is not to be hampered, but a new set of rules will need to be codified to set the boundaries. These developments are likely to include the pioneers themselves helping to form the laws and regulations that govern privacy, data ethics and security.
A few recent examples highlight how companies have realised they need to keep moving to ensure their idea is not stifled. Amazon announced its intent to pilot a service using drones to deliver packages. While an initial set of regulations around the concept was worked on in the US, Amazon took the concept overseas to conduct the pilot, fine tune the service and launch its first delivery in the UK at the end of 2016.
Businesses in Africa and across the globe are also assembling joint task forces or collaborating with competitors to write rules where nothing exists. Last year, 25 startups united to launch a Bitcoin Smart Contract Federation in the belief that Bitcoin offers a more mature, tested and secure alternative to other smart contract platforms. By building the platform, they are creating the rules for others who will join this ecosystem in the future.
In February this year Standard Bank joined the blockchain consortium R3 to explore the technology and its uses – 75 global financial institutions form part of the network, with Absa having joined in 2016.
It is clear that waiting on the sidelines for rules to change and technology standards to solidify is not going to work.
Other emerging technologies include:
•Differential privacy–Integrates digital ethics and privacy standards for companies by receiving data in such a way that individual identifiers are never collected.
•Smart contract technology–Offers an automated way to enforce contracts whether the counter-party is trusted or not. Smart contracts design-in the rules for a value exchange and can be self-exercising or self-enforcing.
•Homomorphic encryption–Implements data sharing and transformations that are performed exclusively with encrypted data, decrypting it only when a user needs to see a result.
In this dynamic new world businesses are not just creating new products and services but are shaping new digital industries. From technology standards, to ethical norms, to government mandates, in an ecosystem-driven digital economy, the Tech Vision survey highlighted that a wide scope of rules still needs to be defined.
To drive governance and accountability, leading enterprises will increasingly embed the newly defined rules and standards into the technologies themselves. It is therefore no surprise that 78% of the executives we surveyed agree that their organization feels it has a duty to be proactive in writing the rules for emerging industries.
We have to fast forward to a world in which advances increase a thousand fold from where they are today and consider how on earth rules will change quickly enough. There will be a need for some level of speedier automation in legislation, as well as a level of self-regulation when change overshoots existing rules.
True authentication and verification could, for example, take place through a bureau service. South Africa has an awesome opportunity to use its population register to create a digitally managed single point of authentication – you just link to it securely and get confirmation. This is also a fabulous way to prevent fraudulent transactions from taking place.
At the end of the day, speed and efficiency remain critical to maximising outcomes in the uncharted world of the future and to fulfil their digital ambitions, companies must take on a leadership role to help shape the new rules of the game. Third world growth economies have a huge opportunity as they are not bound by legacy structures and modes of thinking. African businesses in particular must seize the opportunities created by the eco-system driven digital economy. Discovery is already a great example of how a company can create a single platform which is then provided to global insurance companies.
The huge benefit Africa has is the lack of established retail networks – these are encumbrances of developed markets – Africa can leapfrog them as it embraces these new channels for doing business, which in the future will be far more profitable than traditional bricks and mortar structures.
It will also be important to realise that to successfully implement an idea on the scale required, help from elsewhere will be needed. Most service organisations unfortunately still have pretty rigid conditions, terms and modes of thinking that will only prove to be a barrier to entry. The Google’s and Amazon’s of the world will not wait for you.
However, as rules are not yet advanced enough and much of the current processes within companies are outdated, it is important to keep in mind that when you release your innovation you must make sure you are secure enough and anticipate potential loopholes.
There’s a whirlwind of disruptive activity happening across industries and as these early pivot points of new industries develop, organisations will need to changes the way we see the world and how they embrace risk.
There is no doubt companies will be able to partner best with others that have the same security and technology standards, as well as similar ethical values and commitment to social responsibility.
Second-hand smartphone market booms
The worldwide market for used smartphones is forecast to grow to 332.9 million units, with a market value of $67 billion, in 2023, according to IDC
International Data Corporation (IDC) expects worldwide shipments of used smartphones, inclusive of both officially refurbished and used smartphones, to reach a total of 206.7 million units in 2019. This represents an increase of 17.6% over the 175.8 million units shipped in 2018. A new IDC forecast projects used smartphone shipments will reach 332.9 million units in 2023 with a compound annual growth rate (CAGR) of 13.6% from 2018 to 2023.
This growth can be attributed to an uptick in demand for used smartphones that offer considerable savings compared with new models. Moreover, OEMs have struggled to produce new models that strike a balance between desirable new features and a price that is seen as reasonable. Looking ahead, IDC expects the deployment of 5G networks and smartphones to impact the used market as smartphone owners begin to trade in their 4G smartphones for the promise of high-performing 5G devices.
Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, says: “In contrast to the recent declines in the new smartphone market, as well as the forecast for minimal growth in new shipments over the next few years, the used market for smartphones shows no signs of slowing down across all parts of the globe. Refurbished and used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Moreover, the ability for vendors to push more affordable refurbished devices in markets in which they normally would not have a presence is helping these players grow their brand as well as their ecosystem of apps, services, and accessories.”
Worldwide Used Smartphone Shipments (shipments in millions of units)
|Rest of World||136.8||77.8%||245.7||73.8%||12.4%|
Source: IDC, Worldwide Used Smartphone Forecast, 2019–2023, Dec 2019.
Table Notes: Data is subject to change.
* Forecast projections.
Says Will Stofega, program director, Mobile Phones: “Although drivers such as regulatory compliance and environmental initiatives are still positively impacting the growth in the used market, the importance of cost-saving for new devices will continue to drive growth. Overall, we feel that the ability to use a previously owned device to fund the purchase of either a new or used device will play the most crucial role in the growth of the refurbished phone market. Trade-in combined with the increase in financing plans (EIP) will ultimately be the two main drivers of the refurbished phone market moving forward.”
According to IDC’s taxonomy, a refurbished smartphone is a device that has been used and disposed of at a collection point by its owner. Once the device has been examined and classified as suitable for refurbishment, it is sent off to a facility for reconditioning and is eventually sold via a secondary market channel. A refurbished smartphone is not a “hand me down” or gained as the result of a person-to-person sale or trade.
The IDC report, Worldwide Used Smartphone Forecast, 2019–2023 (Doc #US45726219), provides an overview and five-year forecast of the worldwide refurbished phone market and its expansion and growth by 2023. This study also provides a look at key players and the impact they will have on vendors, carriers, and consumers.
Customers and ‘super apps’ will shape travel in 2020s
Customers will take far more control of their travel experience in the 2020s, according to a 2020 Trends report released this week by Travelport, a leading technology company serving the global travel industry.
Through independent research with thousands of global travellers – including 500 in South Africa – hundreds of travel professionals and interviews with leaders of some of the world’s biggest travel brands, Travelport uncovered the major forces that will become the technology enablers of travel over the next decade. These include:
Customers in control
Several trends highlight the finding that customers are moving towards self-service options, with 61% of the travellers surveyed in South Africa preferring to hear about travel disruption via digital communications, such as push notifications on an app, mobile chatbots, or instant messaging apps, rather than speaking with a person on the phone. This is especially important when it comes to young travellers under 25, seen as the future business traveler, and managing their high expectations through technology.
With the threat of super app domination, online travel agencies must disrupt or risk being disrupted. Contextual messaging across the journey will help. Super app tech giants like WeChat give their users a one-stop shop to communicate, shop online, book travel, bank, find a date, get food delivery, and pay for anything within a single, unified smartphone app. Travel brands that want to deliver holistic mobile customer experiences need to think about how they engage travellers within these super apps as well as in their own mobile channels.
In the next year, research shows, we will see an accelerated rate of change in the way travel is retailed and purchased online. This includes wider and more complex multi-content reach, more enriched and comparable offerings, more focus on relevance than magnitude, and an increase in automation that enables customer self-service.
“How customers engage with their travel experience – for instance by interacting with digital ‘bots’ and expecting offers better personalised to their needs – is changing rapidly,” says Adrian Roodt, country manager for Southern Africa at Travelport. “We in the travel industry need to understand and keep pace with these forces to make sure we’re continuing to make the experience of buying and managing travel continually better, for everyone.”
Read the full 2020 Trends report here: 2020 Trends hub.