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Lessons from A Free Range Chicken – CREATE in order to find GROWTH

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free range chicken

In business we like to talk of disruption. To grow, you have to disrupt the incumbents by setting a new basis of competition which will help you to take market share from them. The digital camera innovators disrupted companies like Kodak which built their businesses on thin film photography. In Nigeria, we have seen the old powerful banks like First Bank and Union Bank live under the shadows of Zenith Bank and GTBank which used technology to redesign Nigeria’s banking sector. The market capitalizations of these banks make that disruption very evident.

Yet, it is not always necessary for a company to disrupt for it to grow. To explain that disruption is not always required for growth, I will use free-range chickens, found in most African villages, to create an analogy. A free-range chicken “is a bird that is allowed constant access to the outdoors, with plenty of fresh vegetation, sunshine and room to exercise”. As a teenager, I grew some and it was a very good business!

This bird does not compete for your time. Unlike dogs and cats, you practically do not invest so much time on free-range chickens. In the morning, they leave the house and in the evening, they return. They feed for themselves!

In business, we can be like chickens. Yes, create a new market in Africa even when you are not disrupting anyone. It is not always that one has to disrupt, but it is mandatory that one has to CREATE, in order to find GROWTH.

https://www.tekedia.com/non-disruptive-growth-the-free-range-chicken-analogy/

Procurement Management in Tekedia Mini-MBA

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He is a zen-master of corporate procurement management. Good People, I am extremely excited to report that the procurement course from our Faculty and industry leader,  Harold Nwariaku FCIPS of Harold & Co Consulting, is ready. This course is super important because How, Where, What & When you buy could become a competitive advantage.

Mr. Nwariaku was formerly the Procurement Portfolio Manager, Guinness Nigeria Plc; Senior Manager Procurement, MTN Nigeria; Senior Purchases Manager W/Africa, Procter & Gamble; and today is the Lead Consultant at Harold & Co Procurement/Supply Chain Consulting.

Harold is a graduate of University of Nigeria Nsukka (BSc Accountancy) and Cranfield University (MSc Logistics & Supply Chain Management).

In markets, it is all about demand and supply, managed through allocation of factors of production. Procurement is a very critical part of that system. Innovators, project champions, CEOs, members, etc, we are happy that the course is ready. Yes, the path to an efficient procurement process within the supply chain systems is here.

Tekedia Institute >> Learn from the best.

Registration for Tekedia Mini-MBA edition 5 ends Monday, June 21

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Invent, innovate and drive organizational transformation, performance, and growth. Capture emerging opportunities in changing markets while optimizing innovation and profitability. Digitally evolve your business or functional area, turning digital disruption into a competitive capability and advantage. Master the concepts of building category-king companies, and thrive.

Registration for the 5th edition of Tekedia Mini-MBA (June 7 – Sept 1, 2021) will end on Monday, June 21. So, if you want to join us, you have till Monday to register. Join dozens thrice weekly to master the mechanics of business LIVE on Zoom. Ask our members what the experience looks like.

Tekedia Mini-MBA is an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies. All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents. We cover all business sectors!

REGISTER here.

The Basic Uses of Data

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Any person that passes through a higher institution must conduct research and publish its findings before he is allowed to graduate. For the research to be accepted by the institution, the researcher, the student this time, must identify an existing problem, collect data that are related to it, analyze the data to describe the problem, predict what will likely happen if the problem is not curbed, and then prescribe solutions that may prevent or solve the problem. If he misses any of these steps, he will be asked to make adjustments to his work or, worse, repeat the whole process. This is what we were taught about research and its uses – to solve existing problems. Hence, every form of research, irrespective of who conducted it or where it was conducted, is meant to solve or prevent a problem.

But one thing that is happening in the country today is that many Nigerians do not use research findings judiciously. They only concentrate on data analysis without considering what they should do with the figures, except to buttress their arguments. Some Nigerians fail to look beyond data to the embedded information they contain. By the end of the day, the essence of collecting and publishing those data becomes defeated.

Recently, I attempted to review social media platforms launched by Nigerians for the Nigerian market. It was easier for me to learn about some of these platforms because the suspension of Twitter by the Federal Government of Nigeria got many Nigerians looking for alternative social media platforms that can replace Twitter. I observed and listened to many of them as they ran around, jumping from one platform to another. I also took note of the Nigerians that advertise their platforms online. To be honest, I was happy that Nigerians are making moves to be part of the world’s technological innovations. With that in mind, I decided to help in the little way I can by writing a technical report on Nigerian-made social media platforms.

However, as I got myself ready to do this job, I began to experience technical challenges. My first and major challenge is that the mobile apps of the four platforms I’ve checked so far are not compatible with any of my mobile phones. The first question I asked myself was, “If these platforms are meant for the Nigerian market, how come these developers did not want to include all the versions of the operating systems of the mobile phones used in the country?” At least they should have created a Lite version, don’t you think? But the two things that have been hitting my mind ever since I made this discovery were that it is too expensive for them to create such an app that can be accessed by all the internet-accessing phones in the country (at least most of them) or, worse, they don’t have an idea of the versions of the mobile operating systems used by many Nigerians. This is where these developers should have utilized data, if they had sourced it.

But let’s look at the data released about Nigeria by government and non-governmental organizations. What do people, especially Nigerians, see when they look at those figures and infographics? Do they see opportunities or doom? Do they use them to solve problems or create more problems? Do they even know the essence of those data? Maybe they thought those organizations released those data and information to entertain or scare them. How many Nigerians have ever used those data to make good decisions towards wealth creation, health, security, and so on?

I think Nigerians need proper orientation on how to utilize data concerning the country’s economic, political, social, security, and industrial status. Agencies, such as the National Bureau of Statistics (NBS), do not publish data so that Nigerians can use them to support their arguments, throw insults at one another, curse the government, and then spell doom for the country. They should be taught how to use free data published by organizations to make informed business decisions.

IMF: The Resurfacing of Fuel Subsidies in Nigeria is Concerning (Full Report)

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An International Monetary Fund (IMF) team led by Ms. Jesmin Rahman held virtual meetings with the Nigerian authorities from June 1-8, 2021 to discuss recent economic, financial developments and outlook. The body made a three-point conclusion about Nigeria’s economy at the end of the meetings.

  1. Real GDP is recovering but unemployment and inflation remain elevated.
  2. Recent exchange rate measures are encouraging, and further reforms are needed to achieve a fully unified and market-clearing exchange rate.
  3. The resurfacing of fuel subsidies is concerning, particularly in the context of low revenue mobilization.

At the end of the visit, Ms. Rahman issued the following statement:

“The Nigerian economy has started to gradually recover from the negative effects of the COVID-19 global pandemic. Following sharp output contractions in the second and third quarters, GDP growth turned positive in Q4 2020 and growth reached 0.5 percent (y/y) in Q1 2021, supported by agriculture and services sectors. Nevertheless, the employment level continues to fall dramatically and, together with other socio-economic indicators, is far below pre-pandemic levels. Inflation slightly decelerated in May but remained elevated at 17.9 percent, owing to high food price inflation. With the recovery in oil prices and remittance flows, the strong pressures on the balance of payments have somewhat abated, although imports are rebounding faster than exports and foreign investor appetite remains subdued resulting in continued FX shortage.

“The incipient recovery in economic activity is projected to take root and broaden among sectors, with GDP growth expected to reach 2.5 percent in 2021. Inflation is expected to remain elevated in 2021, but likely to decelerate in the second half of the year to reach about 15.5 percent, following the removal of border controls and the elimination of base effects from elevated food price levels. Tax revenue collections are gradually recovering but, with fuel subsidies resurfacing, additional spending for Covid-19 vaccines, and to address security challenges, the fiscal deficit of the Consolidated Government is expected to remain elevated at 5.5 percent of GDP. Downside risks to the near-term arise from further deterioration of security conditions, and the still uncertain course of the pandemic both globally and in Nigeria.

“The mission commended the authorities’ measures to contain the transmission of Covid-19 in Nigeria, including the ongoing vaccination program under the COVAX initiative, and strongly supported the authorities’ efforts to acquire additional doses from countries with surplus stocks.

“The mission expressed its concern with the resurgence of fuel subsidies. It reiterated the importance of introducing market-based fuel pricing mechanism and the need to deploy well-targeted social support to cushion any impact on the poor. The mission recommended stepping up efforts to strengthen tax administration to mobilize additional revenues and help address priority spending pressures. “The mission urged the authorities to keep reliance on CBN overdrafts for deficit financing within legal limits, while the government continues to make efforts to strengthen budget planning and public finance management practices to allow for flexible financing from domestic markets and better integration of cash and debt management.

“The recent removal of the official exchange rate from the CBN website and measures to enhance transparency in the setting of the NAFEX exchange rate are encouraging. The mission recommended maintaining the momentum toward fully unifying all exchange rate windows and establishing a market-clearing exchange rate. On monetary policy, to strengthen the monetary targeting regime, the mission recommended integrating the interbank and debt markets and using central bank or government bills of short maturity as the main liquidity management tool, instead of the cash reserve requirements.

“The banking sector remains liquid and well-capitalized while non-performing loans (NPLs) are contained. The extension of the moratorium on principal payments of qualifying credit facilities on a case-by-case basis through March 2022 should be limited to viable debtors with strong pre-crisis fundamentals. CBN stress tests purport that the banking system would remain adequately capitalized except in case of a severe deterioration of credit quality. Nevertheless, it remains to be seen what share of forborne loans may turn non-performing as the impact of the pandemic abates. Since NPLs often rise at the later part of economic crisis, CBN’s strong oversight remains critical to safeguarding financial sector stability.