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Why Public Utilities In Africa Are Broken And May Remain So Until They Can Attract Talents

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During series of workshops and seminars across Africa, we asked groups of students where they would like to work upon graduation.  At Universality of Nairobi (Kenya), none of the engineering students we spoke with showed any interest to work in the public utilities. At Ahmadu Bello University (Nigeria), the brightest of the engineering students noted that public utilities like Nigeria’s PHCN (public electricity corporation) and NITEL (public telecom corporation) were lasts on their lists. From Uganda to Cameroon, Senegal to Botswana; government agencies are not attracting the very bests of African talents.  These students do not see public utilities as places to build their careers.

 

In a seminar in Benin, we made this observation to students: “why do you complain when there is no light considering that the very best among you are not interested in helping to provide that light”. They all smiled and said it was none of their problems.  We gave a lecture making an argument that any sector that cannot recruit and retain the bests in the land cannot compete. It does not matter whether this sector is run by government (many public utilities are still monopolies in Africa) or the private sector.

 

The point is that we cannot necessarily expect the governments to give us the best service on electricity, water, etc when the brightest people do not engage in those areas.  When they hire third class graduates, they cannot provide a first-grade service. It is the same analogy where a school district asks a teacher to provide A students when the teacher him/herself is not an A grade quality. It is a vicious cycle and can only be broken by getting the right talents in the pipeline.

 

The best African technical graduates are employed by banks and MNCs. The few more ambitious and risk taking ones travel abroad. Usually, the ones that make it abroad are above average; at least they pass the visa interviews. Under these conditions, the monopolistic public utilities have to plan with some graduates who may not be on top of their games. (Certainly, we do not claim that all those that work in public utilities are not bright; we are discussing averages here. We are aware of first class graduates in these agencies, though we acknowledge that those might have been hired more than a decade ago.)

 

So how do you fix this problem?

 

That is a big question because public utilities are not efficiently managed and lack dynamism you will see in banking or MNCs. The bureaucracy is stifling with usually below average remuneration. To compound all is that many African governments do not see talent drains in the utilities as a problem they have to find a solution.

 

It makes one laugh when governments issue orders that public utilities in different African countries would double capacity. Nigerian governments have consistently missed targets in this yearly ritual. Great, they will do that using foreign contractors on some lucky years. But when they are gone and time to sustain that capacity, you will notice in few weeks, the system has broken. In the good old Africa when public utilities had the brightest stars from universities, competing far better than banking, many nations had better electricity and water than today.

 

It is about knowledge and skill – the greatest tool of this century. Tell your politicians that knowledge rules the world. And they must find ways to bring talented Africans to public service to move our continent forward. Revamp the system, pay them competitively, develop merit based processes and entrust our bests to run utilities and governments and this continent will be better off.

All Hail Apple, The #1 Global Smartphone Maker In 2Q2011 – The Pains Of Nokia

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It is now official. Apple has completed what everyone had expected for months.  Nokia smartphone global shipment declined by 31% in 2Q2011, from 24.2 million units in first quarter to 16.7 million units. Year over year with 2Q2010, it was off by 30.4%.  By that and coupled with Apple’s good market performance, Apple emerged #1 in the global smartphone market, according to a new report by IHS iSuppli.

 

According to IHS iSupple, Nokia posted the worst performance among arch competitors like Apple, Samsung Electronics Co. Ltd. and and HTC Corp.  With the overall smartphone market expanding by 7.5% sequentially, Nokia’s share of shipments declined to 15.1% in the second quarter, down from 23.6% in the first quarter. Nokia’s smartphone shipments have regressed to their level of two years ago. This caused Nokia to fall to third place, losing the No. 1 ranking for the first time in the history of the smartphone business.

 

Nokia’s decline in the second quarter allowed Apple to climb one place to take the No. 1 position, although the company only slightly outperformed the overall smartphone market, with its shipments rising by 9.1 percent sequentially.  Beyond Nokia’s problems with Symbian, the company also is encountering challenges in its transition to Windows 7 as its principal operating system for smartphones. With the announcement of the transition in early 2011, Nokia eliminated any incentive for consumers and developers to buy into its existing smartphone products, which are based on its Symbian and MeeGo operating systems. That alone has precipitated the decline as not many customers want to invest in a platform that is being retired. The big question is: will Nokia ever recover?

 

Retailers Use Mobile Apps to Enhance Customer Loyalty, Says IDC

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The retail industry is still recovery from the recession. Hope there is no other recession meanwhile.  But as the industry moves to ramp us sales even this summer, one pattern has emerged which is increasinlyg mobile apps have become a business tool to win customers. According to a leading global market research firm, IDC, customer loyalty applications and CRM innovations have  become the key drivers of retailers’ go-to-market strategies.

 

The IDC report  shows that   the top 3 customer expectations from loyalty programs are transparent management of loyalty programs, access to special services and personalized promotions, and access to a wider range of products matching personal preferences. This is where technology is making a contribution. Retailers are increasingly integrating their operations with the latest technology, including mobiles apps. In the report,  Ivano Ortis, international head of IDC Retail Insights was quoted on the importance of these apps on  enhancing operations and improving customer loyalty.

 

“The mobile targeted retailing and rewarding approach is most likely what customers expect from a leading customer-centric retailer. We believe that the ability to create and foster loyalty, enhanced by the delivery of new services, is the key issue for retailer to obtain repeated and long-term customer engagements. With better insight into demand dynamics and customer behavior provided by loyalty applications, retailers can measure the real increase of customer retention, providing an opportunity to drive repeated, larger, and more profitable customer transactions. Retailers must choose the loyalty management applications that deliver higher flexibility, scalability, and responsiveness to optimize the customer experience.”

 

It is about innovation which is the key driver of this industry. You need to find and keep the customers. In order to address consumers’ expectations and add value to the “earn points to redeem” schemes, it is imperative to look at loyalty management within its wider ecosystem.  The following are some key findings from the study.

 

 

  • Loyalty is moving beyond points and discounts to become an integral part of a more encompassing customer experience that will support same-shopper sales and gain of market share to increase or recover competitive advantage.
  • Omnichannel retailers use insights to identify and understand a core group of most valued customers. From there, they can predict what might motivate changes in shopping behavior that will make them even more loyal.
  • Mobile loyalty applications represent an element of innovation that meets customer’s demand for real-time, profile-relevant, and location-based information.

 

 

All Nations Under One Android – Android Holds 48% Of 2Q2011 Smartphone Market

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The mobile market is growing and expanding like a wild fire in a desert.  A total of 107.7 million units were shipped in second quarter of 2011. This represents an increase of 73% year over year with second quarter of 2010, according to market research firm, Canalys.

 

Out of the total of 56 nations in the research, Android was top in 35 of them.  In 2Q2011, Android commanded a global share of 48%.  Asia Pacific  was the largest regional market with about  with 39.8 million units shipping there, compared with 35.0 million in Europe, the Middle East and Africa (EMEA), and 32.9 million in the Americas, according to the research firm.

 

Android topped the chart, for the first time, in the smartphone OS platform in 4Q10 and its shipment were up in the second quarter by 379 percent compared with the same quarter a year before to 51.9 million units. Today, there are many companies that build on Android, including  Fasmicro, Microscale Embedded, Samsung, HTC, LG, Motorola, Sony Ericsson, ZTE and Huawei.

 

Meanwhile, iPhone and iOS have passed Symbian platform in 2Q2011 to the second place behind Android. The former shipped 20.3 million and commanded a market share of 19% in 2Q2011.  Simply, Nokia has been knocked out as the  world’s leading smartphone vendor. Samsung also moved ahead of Nokia, Canalys observed.

 

Tekedia expects this momentum of Android to continue and as we have predicted, it will become the platform of the future especially with the support Google provides across nations and cities.

Bringing Innovative Management Into Nigerian University System

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By Adebola Daramola

Within the week, I had an opportunity to have a tete-a-tete with one of my mentors, a distinguished academic. In the course of the discussion, I appreciated the enormity of Nigerian Universities Commission (NUC) directive that PhD be qualifying criteria for teaching and research in our Higher Educational Institutions (HEIs). I wonder after leaving him a way around this dearth of qualified teachers with PhD. Yet, there is a heightened demand for lecturers. In spite of the shortage in teachers, there is still a surplus supply of students whose needs of access to HEIs are unmet.

 

The Federal Ministry of Education and Nigerian Universities Commission have challenged all 117 universities in the country to establish an Entrepreneurial Study Centre (ESC) as well as start undergraduate programme in entrepreneurial studies. From available records about 1,036,090 students are in universities excluding Nigerian Defence Academy, with less than 40,000 lecturers to teach them. In comparison our Teacher Student ratio (TSR) is at a dismal proportion in relation to economies like Malaysia and Singapore at the crucible of their development. So for us as a nation with an ambitious goal of vision 20:2020, our leadership need be creative to tackle the challenge of teachers in our HEIs.

 

 

My reflection brought an inspiration, which I discovered something like it is already in place, though I call for a significant change in its modus operandi. NUC has initiated a running programme “Linkages with Experts and Academics in the Diaspora Scheme (LEADS).It is a call to industry leaders and accomplished academics to undertake teaching and research in our HEIs for a period between 3-12 months. The initiatives have attracted a number of academics, though I could not ascertain the number of industry leaders so far engaged.

 

 

This is where my thought finds relevance and could help resolve the dearth of university lecturers for some disciplines where tradition has endowed us with a repertoire of luminaries. Disciplines like Accounting, Law, Medicine, Nursing and Education easily comes to mind. In recent times, the interest of people in some subjects like Computer Science, Human Resources, Journalism and Agric-Food Sciences makes us have a good supply of experts to draw from.

 

As an ardent fan of Prof Clayton Christensen’s work on disruptive innovation, the initiative I propose is a disruption to the established norm. A disruption occurs when a new entrant’s/ approach have lower price and lower primary performance, but a great promise of ancillary performance in the future compared to the incumbent’s approach. The initiative will be useful with the ESCs as well help with faculty shortages in Nigeria’s HEIs.

 

 

For the ESCs, what we need institute is an Entrepreneurs-In-Residence (E-I-R) programme. The initiative, though an innovation in this environment has been used in countries like USA and Canada. It require Universities identifying and engaging successful (though failed business entrepreneur will be instructive) entrepreneurs to serve as faculty in their entrepreneurship programme. The list of entrepreneurs, business leaders and executive management staff from different areas, industry or sectors could be crowd-sourced from members of the university community.

 

As a regulatory agency; NUC through the education departments of various universities could organize a short period Train –the-Trainer’s course for such identified entrepreneurs with deficiency in imparting the knowledge. These entrepreneurs will serves as coach as well as possible investors to students as they take the self-employment route. For the universities, it comes at little cost compared to engaging a full time faculty staff, with immense benefits such as creating case study, learning materials and easing the academic staff to do more research than teaching as we have.

 

 

Similar to that, for the faculty shortages in those areas where we have accomplished people to draw from the Experts-In –Residence (E-I-R) will serve as an elixir. It brings accomplished professionals to the HEIs to share specialized knowledge and offer advice to students, while offering a chance for collaboration and stimulation of new ideas with faculty staff.

 

 

The challenge before us as a nation is pressing and demanding. We need to be dynamic with a constant thirst for new ideas and examples of excellence to take us away from our quagmire.

 

 

I will be right to say I know who a university teacher should be, beyond the PhD after his name. A teacher is a specialist in a particular subject; a scholar would qualify, just as a lifelong learner. Those are the attributes that NUC or any university taking up this initiative should be seeking for from the prospective Entrepreneurs- In-Residence or Experts-In-Residence. We need professionals who enjoy teaching and learning in Nigerian Universities.