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Great products like Uber could overcome many scandals. But do not A/B test it on your startup

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We have seen all the scandals in the house of Uber over the last few weeks. Yet, many people are still hailing the service. Why? Uber is simply a great product. Bad PRs and scandals are bad, but for consumers, sometimes, when the alternative is terrible, they do swallow and still go for the scandal-tainted service.

Yet, do not A/B test that on your startup. You may not be as lucky as Uber.

Read this short piece from Fortune, culled from its newsletter, on the power of customer loyalty even in the midst of scandals for a brand.

Uber’s latest public relations fiasco comes via a report of how the ride-hailing company thwarts regulators with a dummy version of its app: When a would-be inspector opens the app, he or she is tricked with “ghost cars” that will accept a pick-up request, only to cancel it minutes later.

Pretty clever. Also pretty outrageous. While some libertarian types say Uber’s actions are justified, many more seem to think the stunt is further evidence of how the company is ethically unmoored.

You can also see it as another form of “growth hacking,” a Silicon Valley euphemism that describes breaking legal or moral rules in a quest for scale. The twist in this case is Uber’s growth hack, in the form of code named “Greyball,” took such blatant aim at the government.

The question is whether this will matter. In the case of consumers, they may cluck at Uber’s antics but are unlikely to abandon the company. Indeed, when I polled dinner party companions last night, everyone had heard the recent stories about sexism, driver misery, and Greyball. All of them tut-tutted—but also conceded they would take an Uber home because, well, the service is just so darn convenient.

And so it goes with consumers. They will express outrage on social media but ultimately keep using a product they like. The government, though, could be a different story. Many regulators are likely to take this personally and retaliate with a spate of subpoenas and fines, the likes of which Uber has never seen before.

My hunch is, for better or worse, Uber will weather this like it does everything else. In the meantime, CEO Travis Kalanik, who is looking for leadership advice, would do well to consult my colleague Adam Lashinsky’s helpful set of suggestions. /Jeff Roberts

Again, remember, it is better to hack growth without scandals.

Facyber Series: Introduction, Pros and Cons of Intrusion Detection System (IDS)

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In our contemporary time, there is no question that IT internet security is a vital aspect of ensuring that your business is secured against malicious attacks. For those who are not still aware, once your whole system goes online, you leave it vulnerable to attacks in the real world.

Interestingly, the solution to protect your digitalware is modest that it is easy to ignore. A simple installation of a security software such as a firewall or an antivirus could be all that you need.

Intrusion detection system is a kind of security management which offers and manages online security for networks and computer systems. Intrusion detection system is a kind of security management, like another protection system for networks and computers. An intrusion detection (ID) gathers and investigates information from several areas of networks and computers to detect possible security breaks with both intrusions – attacks from outside the business – and exploitations.

This is usually supported with vulnerability assessment. Vulnerability assessment is designated as a scanning procedure and it includes technology intended to track the security of networks and computer systems.

Intrusion detection system works to:

  • Assess and evaluate system and user activities
  • Research system vulnerabilities and configurations
  • Evaluate system and file integrity
  • Identify and stop network intrusions
  • Implement role antivirus, anti-spyware management
  • Identify configurations typical of attacks
  • Check abnormal activity patterns
  • Monitor user policy violations

ID systems have increased because of growing responses, due to several attacks on major networks and sites, such as the White House-Pentagon, NATO, and the U.S. Defence Department. The cleverness of impostors towards technology has made the internet and computer security ever tougher.

Moreover, already tested procedures are easily available over the web demanding less technical skill to implement on targets.

The Intrusion detection system is planned to keep the system operational and active. The program examines for potential attackers from the external and then ensures they are impotent to run. They are indeed an essential module of internet security.

Basically an IDS performs as a research device which ensures that the system is not hacked by malicious attackers. These are systems which research data and also referee whether the data is safe or malicious. If the data is malicious, then the data covering the information will be prohibited and is voided from entering the system. An IDS functions as a gatekeeper between the company’s internal network and the outside world.

IDS can be specified as management system for both networks and computers. It is combination of software applications and architected devices with the aim of identifying violation of policies and malicious activities and generates report on that. Intrusion detection system can track any kind of abnormal, abusive or malicious activity that takes places in computer or network. It keeps track log of every single abusive or malicious activity. These logs are very essential for security professionals to set any rules or to take any steps against these activities. The logs kept by IDS can be used against a user as a proof to take any legitimate action.

Generally, intrusion detection systems often generate incorrect report of malicious activity. This leads to ignore the real malicious activity. One of the main features of most intrusion detection system is that they work upon packets which are encrypted.  To analyze these encrypted packets is complicated.

It functions in real-time, so IDS must be very thorough in carrying out its data research without causing lots of latency, i.e., introducing delay in information flow. Company staff who depend on the company’s system like the IT department will be highly affected if the system is taking much time to operate. This means that the IDS must be fast even when researching several other internal programs which may affect the functions and the speed of the systems.

IDS is essential for any network and company. Not only that it can protect data, but it can also enhance and reduce the time duration needed for the network to start up. Your kind of network and budget are the basis of selecting what intrusion detection system best fits.

IDS Pro

  • Response capabilities: Though they probably will be of limited use, you may require allowing some of the response aspects of the IDS. For example, they can be organized to end a user session that disrupts policy. Definitely, you must consider the threats of taking this step, as you may unintentionally end a lawful user session. Though, in some cases, it can be a key tool to avoid harm to the network.
  • Visibility:An IDS offers a clear view of what is going on your computer or network. It is a valuable basis of information about malicious or suspicious network traffic. There are some useful options to an IDS which enable you to monitor network traffic in depth.
  • Tracking of virus transmission:As soon as virus first hits your network system, an IDS will inform which mechanisms it compromised, as well as how it is spreading through the network system to infect other mechanisms. This can be much helpful in stopping or slowing a virus’s growth and ensuring you remove it.
  • Defence: An Intrusion detection system adds a defence layer to your security profile, offering a valuable backstop to some of your other security procedures.
  • Evidence:An appropriately configured IDS can generate data that can form the basis for a criminal or civil case against someone who exploits your network.

IDS Cons

  • More maintenance:Unluckily, an Intrusion detection system does not replace a virus scan, firewall or any other security measure. Therefore, when you install it, it will need extra maintenance effort and will not remove much, if any, of the present problem.
  • Personnel requirements: Managing an IDS needs qualified personnel. The less qualified your personnel are, the more duration they will spend responding to false positives. So you will be making not only more work for the IT department to manage but more tough work in some cases.
  • False positives: IDSs are known for situation of false positives, i.e., sounding the alert when nothing is amiss. Though you can pull the situations to decrease the number of false positives, you’ll never entirely remove the requirement to respond to false positives.
  • False negatives:Intrusion detection systems can also also fail to detect intrusions. Day by day technologies are improving, and IDSs may not necessarily catch everything. This means, it is not all the systems you need to be protected. You need to use more solutions.

 

This piece was contributed by First Atlantic Cybersecurity Institute (Facyber). You can register for Facyber today and take any of the Certificate, Diploma and Nanodegree programs on Cybersecurity Policy, Technology, Management, Forensics and Intelligence. The three-month Certificate programs begin at $200.

 

Africa’s disruptive opportunities on “legacy systems” for agile technology entreprenuers

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Africa has the potential to develop a new development model, with the continent’s demographic development, its rapid urbanization, and technology change being the three major drivers:

Africa is the continent with the fastest growing population in the world. Today’s 1.2 billion people will grow to 1.7 billion in 2030 and 2.5billion in 2050. Africa will account for 25% of the global population in 2050, of which the majority will be at working ages (15-64 years) – a huge potential to reap the “demographic dividend”. Today, 50% of Africans are below the age of 18.5 years and 19% between 15 and 24 years of age, making Africa the most youthful continent.

Today, the share of urban residents has increased to 40%; this trend is likely to continue to a level of 56% in 2050. While a lot of challenges are associated with the speed of urbanization, it has the potential to create favorable conditions for spurring economic development.

Urban centers can create new economic opportunities and drive service-led growth. Urban areas enable aggregation economies through facilitating a wider range of shared services and infrastructure, greater matching of resources, as well as knowledge sharing, cross-fertilization and innovation.

The absence of established ‘legacy systems’ creates a potential to build new industries and systems “bottom-up” by leveraging technology. The technology boom across the continent has been attracting the attention of investors, innovators, and corporates. With the spread of digital technologies, Africa is getting increasingly connected. Mobile penetration currently stands at 73% across Sub-Saharan Africa, while around 19.3% of Africans use the internet.

These figures will increase rapidly in the next few years. The absence of ‘legacy systems’ allows the African continent to position itself as a “breeding ground” for digital innovation. The recent announcement of bringing Senegal’s currency on a Blockchain shows how the continent can “leapfrog” development.

For agile entrepreneurs, the presence of these legacy systems is an opportunity. They can redesign the economic architecture of the continent with new tech solutions that will leapfrog whatever that is available today, at better cost and higher efficiency.

 

What African founders can learn from SNAP IPO roadshow presentation on fundraising

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This week Snap Inc, creator of mobile messaging platform Snapchat, saw an impressive trading debut on the New York Stock Exchange, outperforming the former milestone debuts of Facebook, Alibaba and Google

SNAP is a success and the investors have warned up.

In the first ever US IPO with no voting rights, Snapchat’s stock price has soared on the first two days of trading taking the market cap to $31b—$20b more than its competitor, Twitter.

So what can African founders learn from the IPO roadshow presentation of a self-proclaimed “camera company”?

That it’s really just all about the lost art of storytelling. Before ever diving into the impressive user engagement statistics (158m users, 2.5b snaps, avg. 30 minutes spent per day), Evan Spiegel takes a step back to reframe Snapchat as the answer to the very human desire to express oneself and feel closer to others, giving texture to why the product is so transformational and addictive.

The presentation is heavy on visuals over text, full of a cast of characters, and supporting data is easily consumable with one powerful soundbite per slide.

For SNAP, it was the persuasive narrative that was the difference between a 26-year old getting a $24bn valuation rather than a fall-on-your-face debut for a company that is still losing $514m a year.

While a massive IPO might not be the next stop for most Africa entrepreneurs, the Snapchat roadshow could be the perfect playbook for the next funding round.

The key is not just the statistics, but story. You just have to be a good story teller to make progress in your fundraising. It is an aspirational process which one must learn to tap into.

African Challenges to African Development

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The parlous story of African economic and social development since independence best expressed in the failure to achieve the autonomous capacity for self-actuated development and in particular to create conditions of national and continental modern mass production and prosperity is well known and need not be repeated. It is enough to re-state that Africa’s development failure was because of the leaderships’ choice to retain, maintain and expand the inherited exocentric colonial system of development incapacitation, primary commodity export, import dependency and poverty generation.

The progressive efforts of some African states and leaders to change the system and create self-reliant economies were stymied by the leaderships’ ideological inadequacies and dependency, the balance of payment crises of the late 1970s and 1980s and the subsequent economic crises and decline. This provided the avenue for Western multilateral imperialist agencies  the World Bank and the IMF – to successfully infiltrate into Africa, re-colonize African states and convert them into neo-colonial out-posts of the so-called neo-liberal consensus. This framework embodied in the Structural Adjustment Programmes (SAP) with its destructives conditionalities: currency devaluation, trade liberalization, subsidy removal, deregulation and privatization, re-directed the African states to focus on expanded raw materials production and exports and to abandon industrialization and development capacitation.

The application of these anti-development SAP dogmas in the 1980s and 1990s ushered in two decades of deepening indebtedness, serious economic crises, de-industrialization, socio-economic decline, deepening impoverishment and political repression. On the other hand, the period also saw the upsurge of popular democratisation struggles, civil rights campaigns, the restoration democracy, and the establishment of electoral democracy and the decline of military interventions in African politics. In the economic sphere, there were innovative dependency-reducing responses. This was because among businesses there was an increased re-orientation toward local sourcing of well-known agricultural and mineral endowments to expand production. This led to the emergence of new economic sectors and especially the expansion of cottage, small and medium scale consumer goods industries which were operationally autonomous due to the increased utilization of local resources for production and self-development.

In addition there was relative political stability and policy and institutional the support for businesses through the creation of enabling environments for attracting investments.

It was partly because of these new domestic conditions and the economic self-activation, and the partly because of return of better commodity prices in the first decade of the 21st century that the Western media fabricated and propagated the new view of “Africa Rising”. This became a very popular and re-assuring slogan among some African leaders, politicians and intelligentsia.

However, it was an insecure condition because a “Rising Africa” whose upsurge is generated by increased external demand for primary commodities is essentially insecure. It does not represent genuine African development that is based on expansive domestic production and prosperity generation. It merely reinforces African dependency on primary commodity export and its dependence on the importation of manufactured goods. It is evaporating with the speed with which it was proclaimed.

But there was a more consequential development story of this period that ushered in what this author describes as the Affirmative African Narrative phase of development. This is the progressive assumption by African businesses of the leadership role in promoting national and pan-African development. This new trend of African self-development is captured by the new concept of “Africans Investing in Africa” This is the process by which African industrial, service, and commercial enterprises began to make large-scale investments in many different African countries. The investments involve for example the expansion of Banks, telecommunication companies, trading companies and so on. Examples of these include Nigerians Banks like UBA, Zenith, Access, First Bank; South African banks like Standard Bank and Moroccan Banks; Telecommunication companies such as MTN of South Africa, ECONET of Zimbabwe and GLOBACOM of Nigeria. Others are Shoprite, Coca cola and South African Breweries.

While Africans investing in Africa is becoming common and commendable, it is important to emphasize that NOT ALL African investments in Africa are of equal economic importance or strategic development value. For example, African investments like Shoprite and similar companies which merely establish commercial or trading enterprises that do not add value to African economies are no different from traditional non-African FDI companies that are established to create captive markets for products from their home countries and thereby maximally exploit Africa.

On the other hand, African companies that make investments that are decisive and transformational are those that deliberately promote and advance African development capacitation, through local resource exploitation, mass industrialization, large scale industrial, agricultural and mineral production, and beneficiation for internal use.

In terms of investment for development capacitation through local resource utilization and valorization, the vanguard African company is the Dangote Group. In order to ensure that Africa achieves self-sufficiency in the critically important infrastructure development requirement – CEMENT – Dangote embarked on a pan-African investment strategy to establish integrated plants, or grinding plants or cement terminals in African countries according to their resource endowments. The Group’s ultimate objective is become the ascendant cement manufacturing company in Africa. There is no question that the Dangotean strategy of development capacitation through local resource exploitation, mass industrial production and domestic prosperity-generation is what Africa requires to become the self-actuated mover of its own development and to create a secure development upsurge and continental prosperity that does not depend on the vagaries of external demand for primary commodities.

This Dangotean transformational mission and project is now been threatened by what seems like the unwillingness of African countries to respect and maintain carefully crafted legal investment agreements as sacrosanct documents and binding commitments. Within the past year the Group has faced major challenges as a result of the failure of some African states to keep their sides of the bargain or agreements concluded with Dangote Group. This happened late last year in Tanzania when the government seemed to renege on some elements within the agreements reached with the Dangote Group to give it concessions and incentives for the massive investments of over $500 million dollars that the Group made in the construction of the monumental cement plant in Mtwara, Tanzania. This Dangote Cement plant with its 3 million metric tonnes per annum capacity is the largest cement plant in Eastern Africa. In addition to the cement plant, other associated Dangote development projects include the construction of a coal power plant and a jetty. While these are primarily beneficial to the Groups business, they also represent important investments and permanent additions to Tanzania’s power and sea transport sectors.

Together these projects have generated significant direct employment opportunities and as they mature and attain full production capacity the multiplier effects in various sub-sectors would be expansive and extensive, thereby creating prosperity and income in the community as well as revenues for the local, regional and national the governments. But due to the problems Dangote had to temporarily shut down the plant; and after negotiations and assurances that restored the original terms, the plant resumed production. This Dangotean Tanzanian experience of government infidelity to the sanctity of agreements can only create profound doubts among business people on the readiness of African states and leaders to move Africa forward.

But the Group’s challenges in Africa are not over. Just recently, in Ethiopia, the regional government of Oromo Regional State where Dangote’s new over $400 million dollar, 2.5 million metric tonnes per annum cement plant is located came up with new conditions that are bound to disrupt the operations of the Dangote plant. In what it claimed is an attempt to provide employment for jobless Oromo youth it decided to withdraw all mining licences and agreements already concluded with Dangote and similar other companies with mining concessions. In its place the regional government claimed that it would create youth owned companies that would now supply the minerals required by the cement and other plants.

This action of the Oromo regional government in illegally annulling legally approved mining agreements with the Dangote Group and other companies raise major questions on the genuine preparedness of African states, politicians, and bureaucrats to foster Africa’s self-development through Africans investing in Africa. Without question the action of these governments represents major challenges to Africans assumption of responsibility for their development and the emergent Affirmative Africa Narrative. In fact at its core, these anti-investment actions are a repudiation of the long-standing aspirations of Pan-Africanism and its advocates, and the practical commitment of the continental organizations like the former Organization of African Union (OAU) and the current African Union (AU) to promote African-led development through investments, intra-African trade and exchange, as instruments for creating secure African development and domestic prosperity-generation.

This is a good example of how some African leaderships’ represent serious obstacles to African development. Quite clearly any aspiration for Africa’s take off through self-actuated development as represented by the transformational efforts of Dangote and similar committed pan-African economic revolutionaries is weakened by such leadership unfaithfulness, irresponsibility and lack of serious commitments to African investors.

Despite these set-backs, it is important for African states and the continental and regional economic groups to reaffirm their commitment to African-led transformational industrial development as the basis for Africa’s capacitation for self-actuated development. In this light, it is imperative for the AU and its various economic agencies to design Continental Investment Protection Agreements that would commit African states to respect and uphold already approved agreements and avoid arbitrary nullifications of legally binding instruments. An additional guarantor is for each African state to negotiate investment protection treaties with each other. In fact this is especially indicated for countries such as Nigeria where investors are increasingly embarking on Pan-African development investments.

Finally, pan-African transformational investors like Dangote should remain committed and not be discouraged by these clearly disruptive actions of hapless, backward and anti-African development leaders. The Dangotes’ of Africa as continental transformational vanguards should remain firmly committed to their chosen paths of legal profit making and simultaneous contribution to Africa’s transformation, economic development, prosperity-generation, psychological liberation, and the restoration of Africans dignity and equality with others in the world. These are worthwhile and enduring ideals and challenges that transformational revolutionaries and societal game-changers are bound to encounter and overcome so as to create new worlds.

By Ehiedu Iweriebor – a Professor and former Chair of the Department of Africana and Puerto Rican/Latino Studies, Hunter College, City University of New York, USA.