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The Groupon Magic – How Black Is That?

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What is Groupon? It is the fastest growing company of all time, on this planet. It is one company everyone predicts will collapse because its business model is easy to copy. It is that company that has no special IP except that it has armies of staff that go into all neighborhoods looking for deals with merchants.

 

Groupon  is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched on November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. As of October 2010, Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 35 million registered users.

 

Yet, it continues to rise and rise as the world wishes it crashes to justify why this company is not great.

 

One fact is this: Groupon enjoys the blessing of being the first that entered into this business. They have made more lessons than others and have understood the business better than others.

 

Yet, do not be buoyed. All is not well with Groupon. They are burning cash at a very fast pace than I have never experienced before. To cover more space, they have to pay more salesmen to go into streets and cities. That is the problem in Groupon. You make money but you spend a lot on marketing.

 

Expect Groupon to be under high cost pressure which will cripple their operations and then this group buying will be commoditized.  Nonetheless, the network effects upon which size matters could still make Groupon win.

 

African Entrepreneurs Should Stop Reading TechCrunch – It Offers Marginal Benefits

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Today, we confess that we enjoy TechCrunch for months. But after a while, we sat down and asked ourselves one question: what values have we gotten from TechCrunch? TC is addictive (oh yes) but it is not a tech blog for a typical African entrepreneur. The more you read it from Nairobi, Lagos, Accra, the more upset you are with your environment.

 

There are many things that go bad when you read that great blog – your country sucks! While you cannot find someone to give you $3,000 to start a company, someone is getting $30m bucks to start a gossip site. You begin to wonder, is that American dollar or Zimbabwean? We can assure you that it was indeed US dollar and will always be American dollar. The same world, the same planet but different country.

 

But that is not the reason we do not visit TC anymore – it simply does not add any flavor to what we do. You read all those stories that have no immediate application to Nigeria or West Africa. Who cares what some of those companies are doing when the environments are not similar to what you have in Lagos. Of course, we do subscribe to the feeds and print some lessons on entrepreneurship. Those lessons from founders are really good. We focus on those than the bloated companies.

 

Yes, you waste all your time pounding hopeful news about Silicon Valley and none of those ideas make sense in your nation. Instead of figuring out how to  make farmers receive better information about farming, you are planning on how to take on Facebook. Are you a boxer? The other day, one Nigerian startup that does web hosting vowed to take on Godaddy! Haba, for what? Do you know the war chest they have? Is that the best thing that can happen in Nigeria?

 

Over the years, TC elevated us to come up with many imaginations and ideas. But those were pretty lame dreams with zero chance of success in Nigeria. You get cornered thinking that you can replicate what they did in Silicon Valley in Nigeria. You get fooled that a man who organizes events got $120m to make his website better. You read that some college dropouts got $37m to make an app for photo sharing. You get all these news  that you think your time will come. Those are dreams. The best you can get in Nigeria is borrowing $1,000 from your in-law or friends which you must give account every week on how the business is going. If you do not, they will ask for refunds. If you refuse, fights don start ohh! Of course, no contract, no formality; the uncertainty is increased.

 

So here, we decided to try something. We compiled some nice African blogs that focus on explaining how Africans are solving local problems. We bookmarked Indian tech blogs.  We did the same in Pakistan. We read same in most developing world and simply avoid Western blogs. When we visit, we are not looking at the products and companies, we are looking at technology patterns and stories about managing and running startups. All those raised, acquired, we ignore them.

 

We took those ideas in our parent company and we changed our pricing model, our business strategy and how we present our products. We offered better customizations. Today, we know what the local markets want and not what they are doing in New York or London or Tokyo. And business has picked really up. From Imo State government to even foreign companies that want to tap into Africa, they simply understand now that we have a local solution. Our proposals do not pretend to match the boys from Silicon Valley, we do it to appeal to our local market.

 

As our local Idumota traders do not have the taste of a New Yorker, we have no pressure to create products, at unaffordable cost, to meet the spec the New Yorker will want. So, we make things in-line with reality and understand that we have to be nimble and agile to succeed. While they pool the millions from Wall Street, we just have to manage the little we have. And the Ovim tablet is a testimony. The next one on sale from Friday will retail at about $200. It has phone features and it is a solid Android tablet. If you read TC, you may be tempted to take on Galaxy tab. But who can afford that in Awka? Opopo?Calabar? We think we sell more tabs than most companies because we have something that is affordable. We do not dream! We do business.

 

So, make a decision. Cut off the time you spend reading about Twitter, Facebook, Zynga, Spotify and how you will clone something better than them. Rather, use that time to visit all the websites of Mobile Monday in Africa. Visit the Momo Nairobi, J’Burg, Kampala, Nigeria, etc. You will get insights that will help you start a small business with $2,000 than reading where people spread money as it is not money.

 

Do not interpret this literally, we hope you get the idea. No matter how hard you try, you cannot be better than Twitter or Zynga, but you can learn while mFarm Kenya can work in your village. If those farmers subscribe, MTN can sign your firm in their VAS network.

 

But you can sneak into TC once in a while – they inspire us a lot.

General Key Challenges In Developing Embedded Systems

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There are two classes of challenges in developing embedded systems. We have explained them under two categories below: the rapid changing challenges and non-rapid or slowly changing ones.

 

  • Slowly changing and non changing challenges

Some challenges involved in the design of embedded systems have not really changed in the last couple of decades. The drive for robust products with increased performance at reduced cost, size and weight, for instance, will continue as long as developments in the underlying technologies will permit (Christoffer, 2006; Philip, 1996). Low price translates to reduced resources such as processor speed and memory size which in turn constrains software development and execution. Often embedded devices are very sensitive to cost. A variation of even a few cents per device can be significant due to the huge multiplier of production quantity combined with the higher percentage of total system cost it represents.

 

  • Rapid changing challenges

Other challenges involved in embedded system design are changing rapidly. Three areas should be given particular attention : complexity, connectivity and usability.

 

(a)    Complexity

While the steadily increasing transistor density and speeds of integrated circuits offer tremendous opportunities, these improvements also present developers (individuals, teams, organizations) with a huge challenge: how to handle the added complexity? A modern embedded system can consist of hundreds of thousand lines of software code. More and more products now include complex embedded systems and the development organizations must evolve with the products and their technologies. It is necessary to establish suitable development processes, methods and tools. Developing product platforms also ensures re-use of technology and increased efficiency.

 

(b)   Connectivity

Before the widespread deployment of digital communication, most embedded systems operated in a stand-alone mode. They may have had some capabilities for remote supervision and control, but, by and large, most functions were performed autonomously. This is changing rapidly. Embedded systems are now often part of sophisticated distributed networks. Simple sensors with basic transmitter electronics have been replaced by complex, intelligent field devices. As a consequence, individual products can no longer be designed in isolation. They must have common components. Communication has gone from being a small part of a system to being a significant function. Where serial peer-to-peer communication was once the only way to connect a device to a control system, field buses are now able to integrate large numbers of complex devices. The need to connect different applications within a system to information and services in field devices drives the introduction of standard ICT technologies like Ethernet and web-services.

 

(c)    Usability

Complex field devices are often programmable or configurable. Today’s pressure transmitters can contain several hundred parameters. The interaction with a device either from a built-in panel or from a software application in the system has become more complex. The task of hiding this complexity from the user through the creation of a user-friendly device has sometimes been underestimated. Most other requirements are easily quantifiable or absolute, but “usability” is somewhat harder to define. Yet an embedded system that is intuitive and simple to operate will reduce the cost of commissioning and maintenance. It will reduce errors and be a key factor in the overall customer satisfaction. That is why usability must be given a high priority in the design and development of products, from the conceptual stage, right through to the final testing.

 

7 Points To Consider In Developing A Mobile Strategy By BuzzCity

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We received a well written piece, via email, from Michael de Souza, of Buzzcity. In the piece he noted that though the mobile eCPM (advertising yield per thousand impressions) seems pretty low in mobile, the opportunity is big and growing. To help stakeholders get into this game, he presented 7 key factors that should be examined as firms develop mobile strategy. We have adapted those points below:

 
1. Mobile reach is massive and growing, overshadowing all other media

Mobile dwarfs all other media by a long margin. It reaches more people than TV. There are three times as many phones capable of displaying a web page, than there are PCs in the world. There are more active mobile phone subscriptions worldwide than toothbrush owners (5.4 billion vs 4.2 billion). Several of our top markets see network traffic doubling each quarter.


2. It’s not an either/or

When considering a mobile deployment, remember that it’s not an either/or decision (mobile vs the web). It’s an additional channel, allowing you to reach more consumers.

 
3. Your content can be adapted easily

A couple of years back, we were using our mobile screens to do little more than read SMSs and dial numbers. Since then, behaviour has shifted radically, screens have improved, and millions of users now consume full-length feature articles on mobile devices daily.

 
4. You’ll reach different users

Many marketers, publishers and advertisersmistakenly view mobile as an extension of their fixed websites – a convenient anytime, anywhere channel to reach the same user base.

 

5. Are you sabotaging your own potential success?We’ve seen loads of publishers set up premium ad sales teams, armed with rate cards and brochures and ‘advertorial collaboration opportunities’, to sell their inventory to agencies and brands. Because they currently see mobile as the poor relative (from an earnings perspective), they often throw mobile inventory into the deal as a ‘value add’.


6. Spend time and energy designing your mobisite, and you’ll be rewarded handsomely

You’ve no doubt spent considerable time, money and effort designing and optimising your website. You may have optimised it forsearch, and chances are that you pore over your analytics on a weekly (if not daily) basis. Your challenge will be to apply all the lessons you’ve learnt to the mobile web.

 7. Now back to that question about advertising yields…

BuzzCity, like most ad networks, is bid-driven, and therefore governed by supply and demand. Advertisers choose how much they’re willing to pay per click. If they’re not able to spend their intended budget each day, they’ll need to increase their bid, to ensure that the adserver gives their campaign additional exposure, and results in enough clicks to meet their targets.

 
The bottom line

If there are two words of advice we can give right now, it’s these: “don’t panic”. If you have a mobile presence, you’re in the right place. Keep going. It’s just a matter of making incremental improvements, and building on your efforts.


3D Televisions – Before You Buy Them In Lagos, Nairobi, Freetowm, And More

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Recently, we received a phone call from someone who is receiving a 3D TV as a gift.

 

Panasonic, Samsung, Sony and the hosts of other TV giants are shipping 3D TVs worldwide.

 

They will offer choices: Plasma or LCD. Personally we like the plasma TV though LCD is cheaper and lighter. There is also the good OLED (organic light emitting diode) TV. Your money is your choice. And everyday, new ones are coming.

 

But what is 3D TV? It is nothing but making your TV viewing experience to appear real. It employs techniques of 3D presentation like multi-view capture, stereoscopic capture, 2D with dept, and 3D display to project a view of television into a realistic three-dimensional field.

 

In other words, when you are watching football and someone shoots the ball, you may feel that the ball is coming out of the TV to hit you. Your room becomes an extension of the TV and you may think that a stone thrown by an actor in the TV will hit your head.

 

But before you start buying this TV; please note that you must buy an eye glass or goggle to enjoy 3D TV. You need a special glass which you must wear to have the 3D experience. The problem is that any glass is brand dependent because the universal standard is still yet to be developed. Your Panasonic glass may not work in Samsung 3D TV.

 

When you invite your neighbors to watch a game with you, you must also provide them glasses if they must experience the 3D experience. The problem is that one of those extra glasses could cost up to $150. Imagine having neighbors in your house and everyone is wearing a special eye glass, just to watch a TV. That is it.

 

It seems that engineers are limited here. It is either Nature does not want us to watch 3D TV that we need a goggle or that the engineering is so crude that we have not figured out how to make it to eliminate the goggle or glass. But there is good news as companies like Samsung recently announced a breakthrough that will enable 3D experience without the goggle.

 

Though it has not been validated, some people have noted that 3D TV could pose health risks for children and pregnant women.

 

So before you buy, remember you must budget for the eye glasses as well.