DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 6804

GitHub Votes on Nigeria, Fastest Adopter of Open Source Software

0

GitHub, a software repository platform which brings developers to discover, share, and build, continues to see solid trajectory from Nigerian developers.  Our developers are adopting open source software faster than any nation in the world, notes GitHub which is owned by Microsoft. The future of African software sector is open source as that has the lowest marginal cost for growth. The age of licensing software model will continue to fade in Africa.

The bleeding edge of technology innovation is increasingly shifting from Silicon Valley to places that are also at the frontiers of economic development, including sub-Saharan Africa, says Omoju Miller, the head of machine learning at software development platform Github.

[…]

“We are the at edge of another kind of technology frontier, and this time around, it is not happening in San Francisco, it is taking place in Africa,” she said.

Then, when traveling to the Maasai Mara nature reserve, she recalled passing through numerous rural villages. “We are talking about very small villages and yet in these small villages you can still use mobile payments,” she said. “This is going to radically change what the technology environment is going to look like.

 

The Big Opportunity MAX NG and GOKADA Missed and How New Tech Startups Shouldn’t Miss It

4

By Joel Pereyi

Gokada and MAX missed a big opportunity!

Africa’s mobility sector according to Adetayo Bamiduro, the cofounder of MAX, is worth 100 billion USD.

Being the first tech startups into Nigeria’s bike mobility space, they could have owned and dominated that space before new entrants make entry into the market.

The growth strategy of these 2 brands is the same: Growth through Entry. This is the Growth Strategy most companies use.

In Growth through Entry, we have pre-entry strategies and post-entry strategies. Pre-entry strategies are strategies you use before new entrants come into your market, while post-entry strategies are those you use after they’ve entered.

Under Pre-entry strategies, we have: Deterrence Strategies: strategies you use to increase costs and risks to prevent new entrants from entering your market and Accommodation Strategies: strategies you use to soften competition after they have entered your market.

The focus is on Deterrence Strategies, so I will be sharing 4 Deterrence Strategies businesses all over the world use to defend their market positions and make it uneasy for new entrants to enter their space while they grow their market share and bottomline.

  1. They Erect Structural Barriers

This can be done through licensing, regulation, etc. Most companies work with regulatory authorities or government to achieve this.

At major airports like Heathrow and Gatwick for example, landing slots are all taken by the main airline carriers. So, if you plan to set up a business flying London to New York, you will find it difficult to get access to a popular airport. This singular move helps the big airlines defend their market positions.

Another example are taxi cabs in New York City. To legally operate a taxi in NYC, a taxi cab must have a certificate called a “medallion.” Medallions are issued by the government. They are very limited in supply and they are not very easy to acquire.

  1. They Reduce the Quality of Information on Costs and Demand

This move is also known as Signal Jamming.

Big investment decisions are hardly made on guesses or speculations. They are most often than not backed by data. And no matter how educated a guess is, it is what it is: a guess!

Signal Jamming is simply a way to keep those who plan to enter a new market guessing. They won’t know what your cost structure is. They won’t know for sure whether or not you’re profitable. And this will make it riskier for them to enter your market.

  1. They Raise “Factor Costs”

Factor Costs represents the entire cost of each individual item needed to run a business or produce a product. They cover the costs of getting products, branding, marketing, etc. Beer brands use this tactic a lot. Sometimes, they invest heavily in advertising not necessarily for awareness, but to raise factor costs and scare new entrants.

I’m not sure how effective this would have been for Gokada or MAX considering the fact that the new entrants into their space have very heavy war chests. But that regardless, it is a tested and trusted Deterrence Pre-entry Growth through Entry strategy.

  1. They Use Limit Pricing

Limit pricing is when a company sets prices sufficiently low to the point where a new firm will not be able to make any profit on entering the market. It is keeping pricing low as a deterrent to new entrants. The only caveat of Limit Pricing is that it is usually advantageous if and only if the firm setting prices low have true cost advantage.

When deterrence strategies are impossible or  too costly, companies use accommodation strategies. Any new entrant into a new market will do either of these 3 things: Fight, Cooperate, or Restructure and Change the game. And this is why old players need to have post-entry strategies that will cover their bases on theses 3 fronts on standby.

Markets with high entry barriers usually have few players and thus high profit margins. While markets with low entry barriers have lots of players and thus low profit margins. So as first movers, you play a key role in determining the kind of sector you will be playing in in years to come.

Make the Best of Anything and Everything, Create Your Own Blue Ocean

2

By Sikiru Salami

There are endless opportunities around us but not many of us see them, because oftentimes we’re overwhelmed by vagaries of our troubles, comforts and circumstances. So, we practically remain the same, hinged on the glory of the past (if there ever was any) but faintly hopeful about an uncertain future. In this piece, I shall share few tips on how to create your own blue ocean as an individual in the midst of troubles and limitations.

To provide a good context for discourse, let me cite few cases, depending on what scenario applies to you.

You had hoped to be a University graduate, but ended up with an HND. Your hope was to graduate with a First-class or distinction, but for circumstances within or beyond your control, it just never happened. Your wish upon graduation was to secure a cool job with one of the best companies or firms around, but years later here you are still hopping from one “Manage-it-like-that” Limited to another. You’ve spent donkey years with an employer with almost nothing to show for it, and yet you were wondering, “what if I had spent half of these years running a personal business?”. You wished you had schooled at Harvard, John Hopkins, MIT, Oxford, Stanford, Yale, LSE, or at a minimum LBS, but you were financially and intellectually excluded.

There are tons of other instances of lost or denied opportunities. But the kernel of my today’s discourse is how you can create your own opportunities, in spite of all your past limitations and current troubles. Let’s briefly talk about this idea of Blue Ocean Strategy. In lay man terms, it means entering into an uncharted territory; creating a product for which there’s almost no competitor; creating an unusually new market for a product; creating opportunities out of trouble waters etc. Certain real life examples will help throw more light on this.

As of 2007 and earlier years, there were smartphones, IPods, Workman brands of hand radios, cameras etc. But Apple’s co-founder, Steve Jobs felt that what if he had all these items in a single gadget? Then, there came an iPhone brand. And it changed the smartphone market forever. Let’s talk about Huawei. Huawei is a Chinese global telecom infrastructure firm, also a smartphone maker. Now No. 2 smartphone market leader in the world after Samsung, Huawei has one major headache – Making inroad to the US market and attaining global recognition as does Apple and Samsung. You sure don’t want to know about the troubles the company currently faces with the US government. But to change that, the firm created 5G telecom infrastructure well ahead of the market, and what that does is, render all our phones (largely built for 3-4G capacity) almost archaic. Phone makers are now struggling to catch up, now introducing 5G-enabled phones.

Now let’s talk about how the concept of Blue Ocean applies to our personal realities. Being Oxford or Harvard trained has always been your dream, but you’re systemically and financially denied of such opportunity. Do you know that you can be as much competitive as any Harvard-trained fellow in the marketplace if you choose to do so, even at a lower cost? Here is another instance. You’re running a failing business, or out of job and everything seems hopeless and on a standstill. There are two experiences I will share in this respect – one personal, and another a third party story. Let’s go…

Make the Best of Anything and Everything

 Personal confessions. Graduating with a First Class was one goal I had that never materialized. Getting a Harvard or Stanford or LSE MBA remains critical on my dashboard, but there are many impediments on my path. Like most young men, my dream was to intern or build career with one of these great corporations or multinationals after graduation. It didn’t happen. Growing up was awfully tough, and there were many things my peers could do that I was too disadvantaged to do. Limited access. Almost zero funding. Zero mentoring guide. Limited learning and growth opportunities. These experiences perhaps shaped my worldview — for good. I learnt to make the best of anything and everything.

Early enough, one should be very clear about who s/he becomes and not that utopia self one had hoped to become but that never happened. Till date, some people are still stuck to the past. Take the case of a fellow whose dream was to become a Medical Doctor, but as JAMB and Nigerian factor would have it, he became a Lab Scientist. Instead of making the best of what he had become; he’s stuck to his missed chance to become a Doctor. Lamentation over the past. If he strives to be one of the best Lab Scientists around, you know that could potentially compensate for his lost dream. Life happens.

I have learnt to focus more on learning outcomes, and not on optics and certifications. And that perhaps explains why the differential skills that make me competitive today were mostly not backed by any certifications, and were largely learnt for free. Like many other critical skills, I learnt financial modeling and business data analytics entirely online — for free. I’m currently learning Mandarin, and coding entirely online –for free.

Here’s the tip. Having a clear mindset is key — a mindset that practice knowledge is more important than unproven certificated knowledge. At the beginning of every year, I always have a line-up of skills I want to work on. I usually identify these skills by going through course brochure of great business schools and training institutes. Then, I go on Google to look for training contents and outlines for each skill area. Then after, I go on YouTube, Coursera and few other free education platforms to learn every single bit of the course contents. I really don’t know what most people spend time on YouTube doing, but for me, it’s more of a learning platform than anything else.

All Together

Key point here is, continuous learning positions you for great opportunities. And learning the right skills sometimes doesn’t take anything other than internet data, clarity of purpose and personal sacrifice. At the end of the day, it’s a matter of what you can do with your skills and not where you learnt the skills from. One in every seven PhD holders in Nigeria is jobless. Let that sink.

How We Can Build Great App Products in Africa

0

By Ajayi Joel

I studied how apps survive, and discovered that if such apps were not day to day usage, they would end up being frozen.

Or uninstalled

Personally, I feel we have a lot to do in the app development world in Africa. I had a discussion with someone, a game developer, recently.

What if Facebook was made by a Nigerian? Will it be as used and popular as it is? What about if WhatsApp was made by a Kenyan? Will it have over 1 billion users? What about Instagram or even Candy Crush saga ( a game)?

I have been asking myself this question for months. Is it just because we are Africans that our products (apps in this scenario) cannot become global products?

I am quite aware that because we are Nigerians, we have a lot of disadvantage in scaling. Those include finance, reputation, mentality, etc. But should we say Facebook may not have scaled if it was built by a Nigerian or that we have not really built apps that meet needs in Africa and solve problems?

I have discussed with many app developers in Nigeria. Why was there a rush and a huge acceptance of WhatsApp over 2go? Why do we have millions of Africans using Facebook? Instagram? Snapchat?

Millions using Medium, Google Drive, Dropbox, Medium, Candy Crush, Canva, and LinkedIn

WhatsApp is free. Facebook is free but they make money from ads. What if we solved huge problems with apps in Africa, Will we survive?

I personally believe that if we want to build good apps that will scale, we should focus on building apps that help people complete the jobs they downloaded it for.

The tech world in Africa is living in the future. A.I. is coming; I don’t believe we are anywhere close though.

I have made posts on why Africa cannot skip the 1st, 2nd and third industrial revolution to jump to the fourth which is what we are doing..

Honest truth is that we have not crossed any. We don’t have industries that produce!

How can we say we want to be focusing on electric cars when we don’t have skilled staff that can build good roads? Firstly, the tech world in Africa is missing it which I have issues with.

They attribute tech to coding alone which isn’t true. That aside, the whole ecosystem is jumping the gun. Some are getting it right.

I made a post recently on the Want Economy and the Need Economy.

Trust me, a lot of us are building products that are wants and this is Africa. Africa for now can only survive on products that are needs.

  1. It must be very affordable
  2. It must be durable
  3. There must be guarantee on durability

Can a platform like Medium thrive in Nigeria? Well, yes!

Medium charges $5 monthly which is peanut money to a 14 year old outside the country but huge to a married man here to just “read exclusive articles”. Why not $1.5 instead?

We should begin to build products that meet our immediate needs, solve our present problems even though there are several factors affecting the success rates of these products.

I was at a Nigerian hub last year and I got to see the products some guys were making; very intelligent ideas but I felt some were overboard in my own opinion.

Ideas like using VR for education.

Common… VR

Who will afford it? Maybe their target audience is the rich schools though. But, for me, I always rant about how we approach tech in Africa. We think we are on the same level with the white guys when we have not had internet access everywhere yet, or good electricity.

We need to recalibrate and build for our market. That is how we can build great products in Africa.

The Peril of Fire-Brigade Approach in Business

0

By Ajayji Joel

There’s something called fire-brigade approach in business. It’s an un-scalable way to build a business. But it’s also a fast approach to save lives.

Here’s what I mean.

In trying to reduce hunger in the world, the fire-brigade approach is to keep supplying food to the poor. Supply food to the poor is good though. It works temporarily.

However, has that addressed hunger issues? No!

Can you build your business around this particular problem? Yes!! Will it scale? Well, yes, but not until someone addresses the root problem. If someone solves the root problem, you no longer have a business. Until then, you can keep making money.

If your goal is to attain a hunger-free world, then overlook results of the Hunger, and go for the cause: business thinking…design thinking.

It’s quite simple and critical thinking in approach.

It’s like this.

First, list out the possible results of hunger; malnutrition, death, crime, economic devastation, global warming.. When there’s hunger, these are few of what we’d expect to happen.

I wish I could draw this but I cannot right here because they are interconnected. Something like:

Hunger >> Malnutrition >> Crime >>Economic devastation >> etc.

You can draw in different ways

Remember. Hunger is not the only cause of crime, so you cannot try to fix crime here as the solution but you can tackle crime by trying to fix hunger, you can fix malnutrition by fixing hunger. The best way to address the results is by addressing the root cause.

Now look at all those results you listed, note them down.

So try to also come up with possible causes of hunger. What are the things that cause hunger?

Deforestation, lack of love, no storage, no agricultural consideration, wastage and for the spirituals; the devil!!! What else?

Remember, we want to build a business that addresses hunger right? I had to quickly mention that so you will know why we are doing this.

If you say lack of agricultural consideration is the only problem, you might be missing it. What if we plant enough food and we didn’t consider storage or the greed of humans? We cannot still achieve zero hunger as a business. Note: I said business. I didn’t say community service.

You will end up building a business that will not achieve its goal, and if your revenue is dependent on your goal, it means you’d generate no revenue.

Do you understand?

If you go with the fire-brigade approach which is “combating the problem based on its prominent cause” more like, you will fail. Yes, supplying food to refugee camp because they have no food. It has only addressed hunger issue

It hasn’t solved it. People will not go hungry for 1 day, 2 days, 1 week, 1 month, 5 years but that doesn’t mean the food wouldn’t run out of stock.

But if you focus on solving the root cause, you win!! How? Now pay attention!

If Mr A builds a business on the Hunger issue by selling food at a cheaper rate, he has built a good business, although using a fire-brigade approach which can be successful until someone builds a business on the root cause.

Mr B on the other hand discovers that agriculture is one of the key factors that determine food supply, which leads to hunger if not supplied; he also discovers that there are no storage systems in place and that humans lack love and waste food.

Mr B will build a solid system that will throw Mr A away if he takes all these into consideration. Let’s say he starts a farm, a huge one, build storage devices, works with the government to enforce policies against food wastage and awareness towards sharing food.

If Mr B successfully does this, he would win and soon throw Mr A off the market because he already owns all the supply chains, channels and all.

Well, there are many problems starting all these at once but this post is not about if there will be challenges faced. It’s just about the fact that there are many fire-brigade approaches to business in Nigeria and most are not scalable.

What business do you have? Does it have a design on ground? Check if you have a fire-brigade business model problem. It is a business model that looks at effects instead of causes, working to fix temporary issues under knee- jack emergencies and missing great opportunities.