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Follow These Simple New IBM Steps for Your Partner Strategy

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Finally, IBM grew, again, last quarter. That is very exciting. Over the quarters, as an IBM PartnerWorld member through my Milonics Analytics, we have seen razor-focused commitment of the iconic American company in making sure that partners win. Today, it shared this non-confidential message [see below] to partners on its redesigned partner strategy. I would adopt it, as I do most times, in my own products which I also engage partners [In short, the channel strategy for our cybersecurity business, Facyber, mirrors IBM’s]. You can learn some new things on how to build your partner strategy therein. That “Offer alternative routes to market through Third-Party Marketplaces” is key: you do not need to have 37 branches to serve Nigeria today. You need to find how 3rd party marketplaces can drive your growth, anchored by the unbounded Internet.

In a board strategy session yesterday here in Nigeria, I told a client that it was a very wrong metric, to think that having more branches for the business is a sign of success. We saw the expanding branches as deficiency on strategic capabilities to exploit the inherent features of the modern digital world which would reduce cost even when bringing operational simplicity. So, for some businesses [again, some businesses], do not think that you are doing well because you are adding more branches. IBM is reducing cost through channels.

I am pushing that small companies in countries like Mali, Gambia, Sierra Leone and Liberia can look up to Nigerian companies as their own “America” to strike channel partnerships. If you model your channel process effectively, those firms would respond and help you expand at zero marginal cost. It is weakness to be opening branches and running costs for most businesses now. The number of branches was a metric for the 20th century commerce across most sectors. Today, most businesses do not need to have any.

 

[The video, unfortunately, is in PartnerWorld member area, and not available to everyone].

 

Driving client value and growth together through transformation

Team,

Today, we are introducing the next phase of IBM’s ecosystem transformation. This evolution in our strategy represents a significant change in our engagement model that will make it easier and faster to deliver more value to our mutual clients so that together–you and IBM–remain competitive and grow.

We know you have choices. We have heard you tell us you need a vendor you can count on, one that helps you differentiate yourself to compete in a fast paced, ever changing marketplace with:

  • Partner ready, market leading offerings
  • Simple and predictable programs for greater profit potential
  • Rules of engagement you can trust

Today, we are announcing changes to our program that will:

  • Shift rewards from fulfillment to value, offering the highest potential earnings where Business Partners deliver the most value. For example, you’ll earn greater rewards for developing new clients, generating new opportunities, retaining clients through On-Time renewals, implementing high value solutions and/or delivering solutions as a service
  • Expand and simplify opportunities around SaaS including the ability to earn more throughout the life of a SaaS client engagement
  • Make it easier to adopt and embed IBM technology and develop solutions
  • Offer alternative routes to market through Third-Party Marketplaces
  • Provide a better end-to-end experience when working with IBM

This announcement represents an increased commitment to our partner ecosystem. We have carefully and thoughtfully designed these changes so that together we can win in today’s dynamic marketplace while setting the stage for future accelerated growth.

Please take a moment to view our video and webcasts to learn more.

Sincerely,

John Teltsch
General Manager
Global Business Partners, IBM

Ecommerce Design Template, Mimicking How Africans Shop

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In a TechCabal newsletter, the curator wrote something very insightful: there is a possibility that the way we create ecommerce websites may not necessarily capture how Africans shop. In other words, in the open African market, we are not used to fixed prices as they have in American malls and stores. Here, you have to negotiate price with the seller before arriving at an equilibrium number.

Yes, when Amazon digitized American malls and stores, it made that listed price digital. But in Nigeria and across Africa, we never have listed prices in our four-day markets, open markets and traffic-light markets. So, why do we have ecommerce portals with listed prices?

This is the typical American e-store format which the format above may have to replace. Note the price here is fixed unlike the one above

 

Hold on: something is going here. The African shopping is social and conversational. It is not a mechanical process of “here is the price, pay or leave”.

You know what? That could be the reason why informal Facebook Group is growing, becoming the second ecommerce ecosystem in Africa, as I noted few days ago. Facebook groups mimic the African physical way of shopping with unconstrained haggling and bargaining.

According to Geopoll, a polling company, Facebook group is growing massively, threatening companies like Jumia and Konga on ecommerce. The informal groups in Facebook are now ecosystems of digital commerce as users use them to shop without going to the traditional ecommerce companies.

Now, would you design an ecommerce template that would replicate how Africans shop? That is what Facebook did in these informal groups since the sellers and buyers haggle over prices before money and products exchange hands. And they are growing. Just as the zip codes on our digital shopping carts, managing effectively how prices are determined may be an eureka moment in the Africa ecommerce sector. The American copycat-template may be totally irrelevant here.

We asked the client to remove the zip code field. Immediately, the conversion rate went up. Yes, zip code could destroy your online store capacity to get customers to buy. Our finding was that it frustrates shoppers by asking them to provide something they cannot technically provide. No one knows his or her zip code in Nigeria unless you are working in the Post Office. Yet, asking for that, even optional, is common in online stores in Nigeria.

Of course, there is nothing that says that a number may be in the price field. You can just ask the price to quote a price while you counter-propose. It is Africa, people.

Amazon Can Count Amala, Nigeria Struggling to Count Citizens

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It is a great irony that one American company can now count grapes, tomatoes, ogbolo, zobo and amala in its store, with high level of confidence that it has zero-employee, while the giant of Africa cannot ascertain its true population. In other words, the store is employee-free and 100% automated. And Nigeria’s population remains a board game: you pick your number and move with it.

“Amazon has opened its fully-automated, employee-free Amazon Go store to the Seattle public, having previously only made it available to employees. Sensors and artificial intelligence tell the store’s systems what people are taking off the shelves, and identify shoppers so they can be charged on their way out”

No matter how you see this, Africa is losing grounds daily as a continent. Those people that write that Africa can leapfrog the world must be having malaria-induced dream. It is not going to happen: our best bet it to stay closer to the top game.

The grocery store on the bottom floor of Amazon’s Seattle headquarters allows shoppers to shop employee-free (Source: CBS)

 

Africa has about two decades before we can lose any hope of ever staying-close. Yes, the development gap would become exponential as these technologies advance further, and there is nothing you can do about it. Do not console yourself on the premise that Americans are going to be out of work because their stores would be employee-free. The fact is this: most things they tell us about unemployment and advancement of technology are simply to sell books and newspapers.

A whopping 82% of the wealth generated last year went into the pockets of the world’s richest 1%, according to a new report from the charity Oxfam. As for the poorest half of the world’s population, numbering 3.7 billion people, they saw no increase in their wealth. Oxfam released the report just ahead of this week’s Davos gathering.

How do I know? Japan, the most roboticized nation on earth, has unemployment rate of about 2.8% [in other words, full employment]. If robots have not triggered tsunami of jobless Japanese, I am not sure the AI and robots alone would anchor labor dislocation. The advanced nations would fix their people, as they have done since tractors entered farms. Besides, no one knows what the jobs of the far future would be.  If anyone had asked Western farmers a century ago, if their great grand children would be writing mobile apps today, I am not sure any would have guessed right.

Nigeria needs to lead and that must come with the “fierce urgency” of now. We are very educated, bold and pragmatic, but we have not been able to execute at scale. Some of our most brilliant minds, sponsored by the Nigerian government in late 1970s and early 1980s are all working in America. Some hold doctoral degrees where unemployment rate is close to 0.7% which means nearly everyone with a PhD has a job. They would not return to help to read our technical rebirth. But Nigeria must find a way to attract them. China now has a venture fund dedicated to Chinese who are living abroad. The goal is to use that fund to entice them to return, and build great companies in China. We may need to think of many permutations as the nation needs to deepen its technical depths to stay relevant in the 21st century.

Right Now, the Money is in Agriculture; Millionaire Parties on the Way

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We all agree that one of the most prominent czars in African agriculture is our very own Dr Akinwumi Adesina who is also the President of the African Development Bank. As the bank he leads was presenting its 2018 African Economic Outlook, he explained the catalytic potential of agriculture for industrializing Africa.

“Agriculture must be at the forefront of Africa’s industrialization,” he said, adding that integrated power and adequate transport infrastructure would facilitate economic integration, support agricultural value chain development and economies of scale which drive industrialization.

In a report by Alliance for a Green Revolution in Africa (AGRA), experts also noted that “agriculture will be Africa’s quiet revolution.”

. Currently part of this growing demand for Africa’s food is met by imports. These amount to $35bn yearly and are expected to cost $110bn by 2025 unless Africa improves the productivity and global competiveness of its agribusiness and agriculture sectors.

The report acknowledges that the private sector holds the key to the transformation of the food system so far.

“Impressive value addition and employment is being created by SMEs along value chains in the form of increased agricultural trade, farm servicing, agro processing, urban retailing and food services. Large agribusinesses like seed companies, agro processors and supermarkets are also playing an increasing role in the food value chain in many regions,” said Peter Hazell (IFPRI), the technical director of the report.

The opportunity is huge and it is going to create the largest cohorts of African millionaires in the next two decades. You want to hit it big, this is where it is going to happen. You do not need to buy land because there are smarter alternatives to play this game. Those options range from funding real farmers to investing in the agro-data business. The decades of 2020 and 2030 would be the era where Africa’s agriculture would be redesigned by African entrepreneurs. They would be rewarded, and massive wealth would be created.

As I noted in a Harvard Business Review piece, this one would be done by Africans, for Africa, because the structure of our agricultural systems is not things any outsider could model easily.  Anyone that wants to participate must do it from inside, and that is within Africa. Glory awaits the dreamers.

Specifically for Nigeria, trajectory like this happens: in the 1990s, we had the banking boom. In 2000s, we had the telephony boom. In 2010s, we are having the broadband era. In 2020s, we are going to see convergence in one industry that matters where more than 65% of working Nigerians work: agriculture. Fintech, big data and IoT would see massive convergence, and that coming together would improve productivity in Nigerian agriculture. Even the nomadic herdsmen may be competitively challenged  as some entrepreneurs right now are buying lands to pioneer a future for animal husbandry.

Some Areas, Beyond Farming

There are many ways to play this game; I am listing some from the pool  I had documented in my book.

  • Precision agriculture: deployment of IoT and cloud-based solutions to improve farm yield by helping farmers to make better decisions through precision agriculture. These sensors will provide weather data, soil data, animal health data, and crop health data in real-time. An example is Nigeria-based Zenvus (which I own) which provides deep insights on farms via sensors which capture data like temperature, moisture, humidity and other pertinent farm data.
  • Agro fintech: creating financial solutions geared for the agriculture sector with the use of technology like apps, web apps, AI, blockchain, etc. These will include agro-lending, agro-insurance, agro-trading, etc. FarmDrive, a Kenyan enterprise, connects unbanked and underserved smallholder farmers to credit, while helping financial institutions cost-effectively increase their agricultural loan portfolios
  • Farming ecommerce: expanding farmers’ markets by providing digital platforms for trade of farm produce. This will enable farmers, especially farmers involved in non-perishable crops, find markets outside of their immediate locations. Sokopepe uses SMS and web tools to offer market information and farm record management services to farmers.

Africa, go for big glory: cure extreme hunger.

 

The Anomaly of Banned Abuja Painted Taxicab

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I like Abuja taxi network. It is the best in the nation. Abuja is the only city in Nigeria where you do not need to break a bank to jump into a taxi. The brilliance is unbelievable because the price economics does not make sense. With no deep bus system, you would have expected Abuja taxi system to be (relatively) expensive. Far from it: the drivers have kept prices low.

Of course, we can argue that Abuja has great road networks which ensure that one can move from point A to point B with minimal traffic.  Put together, the price is fair since a ride rarely takes more than 45 minutes. Yet, do not take that for granted, as in Lagos, a trip that takes 45 minutes would still command at least N1200 with a Lagos cab.

But while these drivers are doing their best to keep prices low, the Nigerian government is not helping them. Yes, the Nigerian government through the FCT is unfairly discriminating against the official Abuja painted taxis.  The government has this regulation which encourages taxi owners to paint their vehicles with the city color. Yet, if you check very well, most painted taxis are not allowed into some government premises. In other words, the same government that asked taxis to paint their vehicles with city color is the same one that is telling them that you cannot come into our premises as painted cars. This did not start today; it has been going on for years. It needs to stop.

Government needs to show leadership because most major hotels in Abuja have now banned painted taxis into their premises. That seems very strange: yes, there is something wrong with Nigeria. If not, what is the reason for not allowing a painted cab into a hotel? I mean, the painted taxi is arguably the least harmful car in town since it is already registered by the city. Yet, hotels and governments make the trade harder because they followed the law by painting their vehicles.

I think government has to fix this rule: all painted taxis should be allowed to drive pass gates of hotels and government agencies, just as unpainted ones do. Anything short of that is certainly unfair to those that decided to do the right thing, by spending money to paint their cars Abuja taxi color.