When discussing emerging markets and the future of work and profit, “Data is the new oil” is an expression that has solidified its place in the conversation. If data is the new oil, as the popular phrase goes, then data is our most valuable resource, it powers almost everything we use today to work, move and live, and it is virtually unusable if unrefined.
Innovating beyond proprietary data is becoming more and more important. This is especially true in Africa, the continent that some of the world’s youngest and fastest growing economies call home, where business intelligence and revenue models are calling for a new framework of doing business. This framework, the open innovation ecosystem – where a good number of leap-frog innovations are necessary – requires the need for speed through collaboration from not just the private sector, but the public sector and its stakeholders – such as universities and innovation agencies – as well as the agility and prowess of startups.
Companies across the continent are using external data in addition to their internal data, to better understand and pursue new business developments in the continent’s innovation ecosystem. Here, we’ll explore how African corporates are innovating intelligently which is resulting in the ability to make better business decisions.
In his book Outside Insight: Navigating a World Drowning in Data, Meltwater’s founder, Jorn Lyseggen, unpacks the edge of the intelligence and value that both proprietary and third-party data has an impact in, in what he calls the “new decision paradigm,” giving corporates a competitive advantage and enhancing their decision making.
One of South Africa’s oldest banks recently invested in Cape Town-based aerial data-analytics startup, Aerobotics, which makes use of aerial imagery and machine learning algorithms to solve problems in the agriculture industry. Of course, the options for using the same technology and concept across industries like finance and insurance, are endless. This bet on the technology of drones and data science was a deliberate focus on the strategy of the future of agri-finance for the major bank, understanding and recognising that in an aim to win more business, the third party data and use of Aerobotics technology will be a shift in new business and product development across customers and competitors for the corporate.
And, with technological trends like artificial intelligence (AI), advanced analytics and cloud computing, one way in which Accenture in South Africa is making and informing industry with their data, and leveling up competitive intelligence is through thought leadership positioning. This has enabled Accenture to create and enable themselves and other companies to change how people work and live beyond industry, like platform economies through their intelligence, and thus influencing the business intelligence of industry through data.
African businesses are thinking about ways to truly innovate under a framework of open innovation, even though the resources and capabilities may not always be plentiful. Accenture’s Technology Vision 2018, revealed that “ … South African executives (73%) agree with their global counterparts (79%) that organisations are basing their most critical systems and strategies on data, yet many have not invested in the capabilities to verify the truth within it.” Herein lies the opportunity to better scope the future of African innovation.
2020, 2025 and 2030 agendas set by organisations and corporates are not too far from actualisation, and the reality is that innovation is not self-driving but it’s a social concept that needs humans to execute visions. The appetite and curiosity for this new oil that is data and operating through the framework of open innovation is at its peak for intelligent enterprise, so how do we prepare for such innovation?
These present future institutions are the pipeline of talent that will be nurturing the future of work in businesses and its tools in order for us to be technology ready, and to have a workforce that is future-proof.
According to the Global Entrepreneurship Monitor (GEM), the latest report for South Africa has revealed that the country’s entrepreneurial activity is as its highest level since 2013; this is good news, and in order for SMMEs to continue playing their role in the economy, we need to cultivate the space.
Perhaps more entrepreneurs are needed, my argument lies in the kind of capital that’s invested to groom and scale the current businesses that we have to produce the quality entrepreneurs that the country needs. A matter of quality of quantity. In order for this space to thrive, more capital, intentional collaboration and a government enabling and agile platform needs to be enabled.
The new kind of innovation that’s occurring across industries is able to be done through collaboration. This kind of culture allows for more opportunities to develop products, new customers, charter new territories of innovation and technology, add value to proprietary data and so many new possibilities.
Lastly, in order to truly crack the code of innovation, this opportunity needs to be taken from a systematic, actionable perspective. Modest investments are being made to continue to study the strategic, operational, regulatory and societal implications of data and intelligence in South Africa’s industries and more capital needs to influence policy. In order for South Africa to participate in such an economy, more research needs to conducted so as to play the game and create an environment where intra-trade may happen.
The biggest, oldest and most established companies are most vulnerable to disruption and innovation and the way to beat archaic systems and not end up like a Blackberry or Kodak is to not just look at a company’s proprietary resources and capabilities, but to establish an innovation culture that’s for the present future. In order for Africa to truly be at the forefront of innovation globally, and be prepared for such, all stakeholders will need to realise that innovation requires the trust of stakeholders to collaborate, and the risk appetite for new technology and data to penetrate businesses and the lives of customers to enhance them and make intelligent paradigm-shifting decisions.
This article was first published on Meltwater.