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Just Invested in a dPetrotech, the Fintech of Downstream Petroleum Sector

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This week, we made an investment in a fledgling Lagos-based startup in the downstream sector of the nation’s petroleum sector. The downstream petroleum sector is a latent opportunity and new technologies can bring efficiencies in the system. Like the fintech’s moment in banking, dPetrotech startups (downstream tech startups in the petroleum sector) have huge frictions to fix. We will bring Zenvus proprietary technology and engineer that future. 

Last year,  I delivered the keynotes of the two most impactful oil industry associations in Nigeria. That co-sharing and co-learning have provided new perspectives. 

I believe in the framework that the future is one of abundance, and tomorrow will be better than today. The challenges of today are opportunities for the future and as those frictions are being fixed, things will get better. Fixing those problems will go through markets – and I am a believer in markets.

I will introduce this firm next week. If you work in this sector and looking for enabling technologies, we are here (click to connect).

Grand Opening Ceremony of SPE Int’l Conference – My Talk Title is “The Abundance in Data”

Lack of 5G Devices Stalling Adoption

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5G network, adaptable business model

As 5G’s deployment continues to garner momentum, its coverage is spreading across countries and cities faster than many have anticipated. In the US, the roll out has seen unprecedented growth in the face of China – US trade war, and antitrust issues that resulted in the ouster of Huawei, and slowed to great extent, the pace of the deployment.

While there has been significant progress in the roll out, PwC, US 5G Index reports that the real world applications and uses for the average person have been slow to keep up. In its analysis, PwC predicts 60% coverage in the US in the next six months. But the report says the challenge of its growth lies on the availability of the 5G enabled devices, and that less than 2% of devices will be 5G enabled in six months.

However, there is hope that enough 5G devices will be available by the end of the year, according to PwC principal Dan Hays.

He said: “We’ve been tracking the progress on 5G since the initial networks were launched in the US about a year ago and we have seen the coverage for 5G grow significantly over the past six months. It’s gone from a very small fraction of the US having 5G coverage to today, where roughly half of the country is covered with at least one 5G signal.

“Even as the coverage has advanced, there are still relatively few devices that are capable of connecting to these more advanced networks and the sales of those devices are still very weak. Even though we have half the country where 5G is available, less than 1% of end-user devices are really capable of taking advantage of the 5G signal.”

According to the Index, consumers have been slowly responsive to the availability of 5G. In the US, they are only willing to pay about $5 per month more for in-home services or another $4 each month mobile.

The speed and other benefits of 5G are likely going to be experienced first by enterprises before individuals. PwC says companies leveraging networks of Internet of Things (IoT) devices are likely going to embrace the services before others.

The cost of 5G services has been a hurdle between its providers and consumers. With the trade war still in the way, PwC said finding cheap manufacturing that will result in low-cost infrastructure and products will remedy the situation. The whole world relies on China when it comes to cheap infrastructure and low-cost tech products.

“Many people feel like they already pay too much for their mobile services, and we’re seeing that unless the industry makes a very clear and compelling case for 5G, they may be stuck making the investment in the network and not seeing a benefit in terms of revenue and profit,” added Hays.

Another possible barrier to the acceptability of 5G is the availability of 4G networks with speeds close to that of 5G. The Index noted that the use of high frequency spectrum by various internet service providers is yielding almost the same result as 5G.

“At its best, 5G should offer up to 10 times the speed of 4G networks. However, in these early days of 5G, there’s a lot more variability. Some of the networks that use the very high frequency spectrum are achieving these kinds of very high speeds today. However, they tend to be available only in very limited areas and not really very good for truly mobile use. You kind of have to be sitting in one place to take advantage of them.

“To work with a 5G network, your device has to have a compatible set of antennas and a compatible chipset. The chipset in particular has been one of the gating items for the availability of 5G smartphones in particular. Right now, there are several dozen devices that have been announced that will work with 5G networks. However, many of them don’t work with every single operator, so they might just work with one and not all, and many of them are not yet commercially available,” said Hays.

The lack of devices to keep up with 5G roll outs is also widening the interest gap among consumers. The peculiarity of the devices is giving people a reason to stick 4G network that is more device-tolerant.

The Lagos’s BIG Ban – $400 Million On The Line

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OPay has raised at least $200 million. This includes the $50 million it raised in June 2019. Max has raised about $8.1 million and Gokada about $5.6 million. For these three companies, investors may see their plays gone from tomorrow when the ban on motorcycle kicks in. Add the keke or okada micro-investors, you may see at least $400 million blown. It is important to note that without the riders, OPay business model fails since the riders are the mobile financial centers! Yet, as you debate this policy, the statistics from government hospitals which show 10,000 accidents with 600 deaths due to motorcycle related accidents must be part of the equation.

Tell me – what happens to Gokada, Opay, and Max in Lagos state?

Alpha Mead to Co-Create Ideas for Talents Upgrade in Nigerian FM Industry

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The Management of Alpha Mead Group, a Total Real Estate Solutions company, has reiterated its commitment towards skills and knowledge development in the Nigerian Facilities Management industry. Information from the company shows that the first Facilities Management Talents Market Outlook session is being organised in this regard to generate needed insights for planning and development of appropriate solutions for the reskilling and upskilling professionals in the industry.

The session, which will be held on February 13, 2020 “seeks to help FM Team Leads, HR professionals and decision makers situate the role of facilities management in their corporate existence and share perspectives on how to attract, motivate and retain talents,” the post on the official professional networking page of the company reads.

Olusesan Ogunyooye

 

In an exclusive interview with Olusesan Ogunyooye, Head of Marketing and Communications, it is obvious that the session, which is expected to have a number of captains in various industries where FM roles have become imperative for the operational effectiveness and efficiency in the last two decades, will be used to appraise the current human capacity as well as the capabilities required to drive the relevance of the industry in the face of its place in business performance.

“It seeks to improve skill and Development in the market because it seeks to bring together FM leads and HR professionals (who manage FM professionals in organizations) to identify the knowledge gap and co-create ideas to bridge the knowledge gap,” he said.

Infoprations had earlier analysed problems associated with talents retainership in the industry with the suggestions that players need to revisit their talent retention strategy. One of the strategic options proffered by the analysis is that the business goals must be aligned with TRS to ensure maximum return on investment and benefits to the employees.