Africa is facing a reckoning when it comes to its relationship with digital technology. Infrastructure deployment challenges and the high cost of data make it difficult for enterprises and institutions to implement new solutions that can transform their operations and functions and take the continent to the next level.
According to a World Bank report, African countries need to increase the use of digital technologies to boost employment growth.
But for many companies, transformation can also mean disruption. Are all businesses built to withstand or adapt to these changing times? By understanding transformation and adopting the right mindset, companies can embrace digital disruption in a meaningful way.
Don’t be afraid of change
Businesses should be excited about the prospect of digital disruption. For traditional brick-and-mortar organizations, it represents a shift in consumer needs and lays the foundation for a technology-driven, digital economy. Organizations ignore this at their peril.
We have witnessed the consequences of companies that, intentionally or unintentionally, ignore current trends, fail to meet the changing needs of their customers, and are then fired or undermined by competitors.
Digital disruption is not a one-time phenomenon. Companies must constantly be on the lookout for the challenges and opportunities it brings. Decades ago, satellite TV transformed Africa, changing the media and broadcast landscape and bringing audiences together across the continent.
Today, over-the-top (OTT) and on-demand streaming services are fast becoming the most popular way for the public to interact with and consume content. Example: Video-on-demand (SVoD) subscriptions in Africa are expected to reach 13.72 million by 2027.
The financial services sector in Africa is another excellent example of digital disruption transforming an industry. Fintech on the continent is thriving, with customers using mobile digital banking platforms to make payments and transactions online.
The industry’s success is a result of recognizing customer circumstances and using new technology to accommodate them
their needs – a critical part of Africa’s overall digital transformation journey.
Go where your customers are
As Africa becomes more connected, more citizens are participating in the global digital economy. That means getting used to a global experience, and African companies need to provide that same experience.
Digital disruption is revealing new opportunities to accommodate that experience and streamline business functions. Let’s say your business is moving away from traditional practices like call centers and replacing them with digital services like mobile apps and digital communication portals.
This transition helps you unlock new benefits while responding to new customer trends. A customer does not have to call during working hours and spend time going through processes with a company representative. Instead, they can do everything themselves 24/7, from checking their balance and making payments to reconnecting services and upgrading to new services.
And this doesn’t have to be limited to one platform. Whether you use an instant messaging app like WhatsApp or Telegram, USSD or web applications, companies should take a multi-platform approach and use those that are popular with their customers.
Be open to innovation
Industrial revolutions cannot happen if we sit on our hands and do nothing. Across Africa, start-ups and established companies are experimenting with how emerging technologies can be leveraged to meet new and long-standing business needs.
We see this in the various technologies that are starting to emerge. For example, Artificial Intelligence (AI) plays a more active role in business operations and manifests itself in a variety of ways (often at the back end, away from consumer visibility).
AI and automated processes enable people to focus on more important work. By not having to worry about mechanical, repetitive tasks, you can free up staff and resources for other projects and initiatives.
AI is a tool that saves you time and money by making you think strategically rather than primarily about it
what happens at the execution level. AI also provides valuable insight into your data, such as modeling customer behavior and purchasing trends.
We are also starting to see blockchain technology making its way into local business operations. Companies are integrating digital collectibles into marketing campaigns, one of many uses I’m sure we’ll see more of. As the demand for blockchain developers in Africa increases, the technology will usher in the next generation of digital disruption.
In the end, that’s what it’s about. We cannot ignore these new developments and continue with business as usual. By engaging in digital disruption and rethinking customer engagement and digital development strategies, we can and must fully leverage new technologies to transform Africa’s business landscape.
By Vincent Maher, Group Executive, Head of Digital at MultiChoice Group