In this videocast, I explain that the constructs of delivering the highest customer service (and product) quality is an illusion. You can deliver the best service and still fail. There is need for startups to balance the level of service (and product quality) to the cost required for that service and then model what customers can afford. Etisalat Nigeria had premium products but when Nigeria got into recession, few could afford them. You can make iPhone for few thousand people (in Lagos), but you may be better having Tecno for the masses.
How MainOne, MTN Cloud, RackCenter Could Boost Revenues
MainOne, MTN Cloud and RackCenter should invest efforts to build critical building blocks of computing elements, the primitives, in their data center businesses with specific focus on Nigeria and Africa. This will help them attract developers/partners to expand their operations. The promise is economies of scale through higher adoption of their platforms. As this adoption happens, these companies can enjoy massive “tax” which is simply collection of fees imposed on companies that depend on their platforms. Africa-themed primitives like procurement primitives, anti-corruption primitives, etc will be enablers for this differentiation in the market.
How GTBank Is Winning With “Primitives Model” In Nigerian Banking Sector
In this videocast, I discuss the primitives model which is focusing on perfecting the basic components of any business model or technology architecture. And then make it available for units, partners and developers to use those pieces with ease and flexibility. In GTBank, there is a high level of autonomy when you are working with their technology teams. The bank is finding success by building small efficient units in both its business processes, models and technologies for partners. The bank invests time and efforts to get the basic elements, the primitives, of any section of its business right, and then quickly scale them across platforms and operations.
NCC Issues Statement On Etisalat Nigeria Takeover, Banks Meeting Vodacom/Vodafone For Sale
With the takeover of Etisalat Nigeria by consortium of banks in Nigeria, the Nigerian Communications Commission, NCC,has issued a statement reassuring subscribers of continued service integrity from the network.
My Tony Ojobo, NCC Director, Public Affairs, issued a statement late Tuesday, that reads in parts:
The Commission has taken proactive steps to cushion the impact of the takeover. This is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.
In view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised
The statement also reminded Etisalat and the banks what they cannot do with the collapsed company, owing to the conditions attached to the licensing.
“Sub section 1 – The grant of a license shall be personal to the licensee, and the license shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the Commission has been granted;
Sub section 2 – A licensee shall at all times comply by the terms and conditions of the license and the provision of this Act and its subsidiary legislation.
This means that any change in Etisalat Nigeria license must be approved by NCC. It also means that rumored plan for the bank to sell to an European telecom operator may not happen without the blessing of NCC. An European telecom giant has been in Nigeria since last week working with the banks for possible sale. Vodacom/Vodafone is rumored to be the firm.
Great Technology Companies Deploy “Primitives Model” For Scale
In this videocast, I explain why every organization especially the ones that want to build platforms must have “primitives model” as an anchor of their strategies. With this model, it it easier to scale and enjoy economies of scale by simplifying the processes of making things. This works in both business models and technology architectures. When you break things into the simplest computing components or processes, it will be easier to re-organize them with higher flexibility and speed. That flexibility brings new ideas and innovation in firms. It also helps developers and partners in your platforms to adopt your systems and innovate faster.