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.
Cisco gives pre-owned tech a Refresh
In a market of constant upgrades, Cisco Refresh aims to keep quality product away from landfills, writes BRYAN TURNER.
When one gets a new smartphone upgrade, the old device may be used as a backup or can be used by someone else. In business environments, equipment upgrades may not be conducive to keeping old equipment around, which may send older, working equipment to landfills.
This is where Cisco’s Refresh initiative comes in. At Cisco Connect in Sun City this week, Ehrika Gladden, VP and general manager of Cisco Refresh, lifted the lid on a little-known aspect of the company’s strategy.
“Refresh is Cisco’s global pre-owned equipment business unit,” said Gladden. “It is certified to meet the quality and engineering standards of Cisco. It is licensed for software and it’s also inclusive of a services warranty.
“Our responsibility in 80 countries around the world is tied to both the recovery of assets and the ability to leverage those assets at a lower price point. This ensures our sustainability and proper usage of the Earth’s resources while providing access to small and medium businesses. The products are typically in the range of 20-40% cheaper. The products represent the entire portfolio for Cisco in some part, the majority of that product set is 2+ years in terms of generation.”
Cisco’s Circular Economy initiative ensures a sustainable loop through businesses willing to pay a premium for the latest, cutting-edge solutions, while Cisco markets older, working equipment for resale to those who don’t require the latest solutions. This ensures far less new components need to be used in a product range.
“We are leveraging the model of remanufacturing, refurbishing, recycling, and reusing,” said Gladden. “Depending on the product set, there is a certain set of product yield that we expect. They vary from product to product, but we do have a percentage that doesn’t make it through.
“Those are always reused, meaning we will look at those products and decide to use them completely differently, leveraging the components, remanufacturing back into the overall build process. If that can’t be done, we will go into a recycle process where we melt those products down to reuse them.”
Repairing and refurbishing older products isn’t just that. Cisco is creating repair centres that are owned by third-parties to uplift local ownership.
“The repair centres, as a global manufacturer, is Cisco’s entree into local ownership,” said Gladden. “I want to be precise about what I mean by local ownership. It’s critical for us to have a localised presence, but doing that through ownership. When you look at inclusive economies, those that are participative, to be sustainable – not in the product set, but generationally.
“The ability as a global manufacturer through a local ownership model isto create a repair centre where a product can be returned, screened, tested, and repaired, leveraging the talent that the Networking Academy is creating.”
Cisco is working closely with local governments to understand where it operates and how to leverage the skills in the market.
Gladden said: “We are also super excited about the National Development Plan and African Union statements which with we align: eradication of poverty, job creation, ownership, healthcare, education, it all fits in the model. So we were very excited to have the opportunity to come to Africa first to announce this. Over the next twelve months, we want to establish our first repair centres, and in the next 3 to 5 years, build that vision into a reality.”
Why Data Privacy has become a Pipe Dream
If you’re active on WhatsApp, Facebook or any other social platform, you’re not as safe as you thought, writes
AARON THORNTON, MD of Dial a Nerd
As you begin to read this, let’s perform a quick experiment! How many active conversations are you engaged in – right now – on WhatsApp? When was the last time you shared a picture or video on Instagram? Is Facebook currently open and active on one of your devices? And how many internet- connected devices are you using at this moment? Chances are, you have multiple devices running multiple applications most of the time. So what’s the problem, you ask? Since when did checking in with a high school buddy in Australia via Facebook become a dangerous act?
In reply, we say, read on if you can stomach it!
Nation-State Hacking & You
It might seem like a laughably long shot to say that you are a key player in the increasingly sinister and sophisticated world of nation-state hacking. Well, you are. Given that individuals, businesses and governments are now constantly connected, round the clock, consumers and businesses have become fair game in cyber espionage. And as we create and share more and more data, both the value and accessibility of that data increases. According to a report by McAfee, IP theft now accounts for more than 25% of the estimated $600 billion cost of cybercrime to the world economy.
With data having become the ‘new gold’, nation states are naturally pouring investment and key resources into building advanced cyber warfare tools. Indeed, entire divisions of armed forces as well as the upper echelons of corporate leadership are devising ways to harness data to gain economic, political and social power. At the highest level, tools and platforms are being developed with the specific aim of perpetrating cyber espionage and data theft. No surprise then, that the consumer and business environments are rife with increasingly advanced malware, ransomware and many other malicious hacking tools and methods.
Still not convinced? Yes, we can smell the scepticism from here! So let’s take a moment to see how this has already played out, beneath our noses.
Remember the Facebook–Cambridge Analytica data scandal of early 2018? For many, this was a watershed moment in the emerging war for consumer data – and the ensuing tensions between privacy, power and profit. Need a refresh? Well, in 2018, Facebook exposed data on up to 87 million Facebook users to a researcher who worked at Cambridge Analytica, which worked for the Trump campaign. In essence, the data was harvested without user consent and used for political purposes.
Another chilling but less direct example can be found in Russia’s meddling in the 2016 U.S. elections. According to Politico, Russia launched a massive social media campaign to ‘sow discord’ leading up to the elections. The website reported that as early as 2014, an infamous Russian “troll farm” known as the Internet Research Agency – a company linked to Russian president Putin – developed a strategy using fraudulent bank accounts and other fake identity documents to “spread distrust towards the candidates and the political system in general.”
When referring to the Russian hacks and their impact on election results, one U.S. Representative sagely noted: “They didn’t just steal data; they weaponized it.”
Ignorance is not bliss
Okay, so data is being ‘weaponized’, and ordinary people and businesses are being caught in the crosshairs of cyber warfare. A little bit frightening, but the good news is that savvy individuals like you can take steps to protect personal data and actively combat the creeping influence of juggernauts such as Facebook and Google.
Now that we’ve left you sufficiently spooked, you can get back to those demanding WhatsApp/Facebook/Instagram notifications (same company, by the way)…albeit, we hope, with a slightly altered [cyber] worldview!