A shiny new sports car may look beautiful, but without the quietly purring engine under the bonnet, it is little more than a stationary lump of metal. So too, South Africa’s economy, where flashy sectors like financial services are considered to be key drivers, when in fact it is what’s under the hood – in this case the Internet – that is important. A new study has revealed exactly how crucial the Internet economy is to the country’s future.

 

The Internet Economic Impact Study, conducted by World Wide Worx for Google South Africa, has revealed the growing importance the Internet has as an enabling tool for business communications, collaboration and transactions.

 

Until this report, the size of the contribution made by the Internet to the overall economy has never been quantified. This study goes much further than simply highlighting the impact this has on the economy, however, providing a series of policy recommendations that it is hoped will assist its continued growth and development. Such recommendations are important when one considers that already, the Internet economy contributes some 2% to gross domestic product (GDP).

 

According to Arthur Goldstuck, MD of World Wide Worx, the study shows that the total spent by consumers, small and medium enterprises (SMEs), and government on products and services via the Internet in 2011, as well as on Internet access and infrastructure, is R59-billion.

 

“What is interesting here is that the largest contributor to this total is not, as most people would assume, the investment by service providers in infrastructure. While the mobile networks and fibre providers have certainly spent their fair share on infrastructure – a total of R13.5-billion – this pales beside the R29.2-billion spent on Internet presence and access,” says Goldstuck.

 

“The study further indicates that e-commerce is growing at a rate of around 30% a year, and is showing no signs of slowing down. In fact, taking into account the fact that a number of major consumer brands and chains have not yet devised comprehensive online retail strategies, the scope for future growth is even greater.”

 

He points out that certain sectors, notably the airline industry, have already fully embraced e-commerce. Airlines are already comfortable with e-ticketing and are rapidly migrating ticket sales online. This is demonstrated by 2011 sales of nearly R9-billion.

 

It is a surprise, continues Goldstuck, to learn that government spending on Internet infrastructure and access is comparatively low, coming in at a little more than R1-billion. It must be said, however, that general ICT spending runs into several billion Rand.

 

Luke Mckend, Google SA Country Manager, adds: “No business, industry or government can ignore the scale of the Internet and the impact it is having.  It presents a host of opportunities.  Small and medium enterprises (SMEs) have been uneven in their uptake, but they are moving online in increasing numbers and are committed to doing so.”

 

This is clearly demonstrated by primary research conducted by World Wide Worx in the form of its renowned SME Survey, the original representative survey of small and medium enterprises in South Africa. The 2012 edition has highlighted the importance of the Internet to the economic wellbeing of this sector in particular.

 

“The survey shows that around 410 000 SMEs in South Africa have a website, representing 63% of active, formal SMEs. The full impact of these websites on the economy is placed in perspective by the number of SMEs that would not have survived without one. Approximately 150 000 SMEs in SA would go out of business, were it not for their Web presence. Since SMEs account for some 7.8-million jobs, this means that as many as 1.56-million jobs would be in jeopardy were it not for the Internet,” suggests Goldstuck.

 

He adds that while the impact of the Internet is already significant, it is expected that it will increase even further in the coming years. This will be fuelled by both the growing awareness of the importance of the Internet across business and government, and rapid growth in the number of Internet users.

 

“Thanks to the smartphone explosion currently taking place in South Africa, access levels and awareness are increasing all the time. In fact, it is the smartphone users who represent the future potential of Internet growth in South Africa. By next year around half of all cellular phones sold in SA will be of the smart variety. Since smartphone users eventually become Internet users, we can expect the Internet user base to grow at an accelerated pace.”

 

However, he cautions that according to the Digital Participation Curve, a model developed by his company, it can take up to five years before new Internet users gain the confidence and experience to become active participants in the Internet economy.

 

“Consequently, with the number of Internet users having begun accelerating in 2008, the number of experienced users will begin accelerating in 2013, and will continue to do so for the following five years. The result is that an Internet economy worth R59-billion in 2011 and making up 2% of the SA economy could grow to as much as 2.5% of the economy by 2016.”

 

“To put this into perspective, the agricultural sector made up only 2.2% of GDP in the last quarter of 2011. Looked at it another way, it is likely that over the next five years, the Internet economy will begin approaching the size of the construction sector – an estimated R120-billion in 2011, suggesting this is potentially one of the new building blocks of the South African economy,” concludes Goldstuck.

 

A copy of the report can be downloaded at www.internetmatters.co.za

 

About World Wide Worx

Founded in 2000, World Wide Worx is South Africa’s leading independent technology research and strategy organisation, with a focus on technology in business strategy. It offers a range of independent reports as well as custom research and strategic services. It provided the first benchmarks in Africa for evaluating online presence, and continues to innovate in this arena as the digital economy extends beyond the Internet. In offering strategic insight into the hi-tech economy, World Wide Worx also provides a powerful platform for decision support.

 

Author: Arthur Goldstuck

Managing Director, World Wide Worx

arthur@worldwideworx.com

Tel: + 27 (0) 11 782 7003

Bread from wheat. Milk from cows. Paper from trees.

All paper in South Africa is produced from plantation-grown trees, recycled paper or bagasse (sugar cane fibre).  Plantation-grown trees are farmed for paper, just as maize is planted for cereals and wheat for bread.

Our fibre is not sourced from the wood of rainforests, indigenous or boreal trees. This is a myth, often wrongfully perpetuated by e-mail footnotes.

In South Africa, 600 million trees across 762,000 hectares are specifically grown for use in pulp and paper manufacture and the industry plants in excess of 260,000 trees every single day.

The industry has made significant advances in terms of environmental sustainability over recent decades.

The use of renewable biomass-based energy has enabled the industry to avoid the use of 1,3 million tons of fossil fuels such as coal, oil and gas annually and therefore the associated carbon emissions.

The industry is a significant employer and contributes to jobs in rural areas, foreign exchange earnings and GDP growth.

Over 170,000 people are employed because we grow trees and conduct all the downstream activities. Roads are developed in deep rural areas, and clinics, hospitals, schools and communities are sustained.


There aren’t many industries around that can aspire to becoming genuinely sustainable. The pulp and paper industry, however, is one of them. It is inherently sustainable. 

Jonathan Porritt, chairman 2000–2009, UK Sustainability Development Commission

 

STORING CARBON.  FIGHTING CLIMATE CHANGE.

Plantations are atmospheric carbon sinks which mitigate greenhouse gas emissions by absorbing carbon dioxide (CO2) and releasing oxygen through the natural process of photosynthesis.

South Africa’s timber plantations, which cater for pulp and paper, furniture and other wood based-products, lock up 900 million tons of CO2 — a key environmental service and a means of mitigating climate change. (Forestry South Africa, 2011)

Only 9% of the total plantation area is harvested annually. This is replanted within the same year. 

Only mature trees are harvested.

Carbon absorption continues as the new trees grow and young trees are able to absorb carbon more rapidly than the older trees. These trees, and thus paper products, are a renewable resource.

If it were not for the pulp and paper industry operating world-wide for the last 150 years the CO2 levels in the atmosphere would be 5% higher (about half a degree in Celsius) than they are at present. (National Council for Air and Stream Improvement, Special Report No 07-02.The greenhouse gas and carbon profile of the global forest products industry, February 2007)

 

Paper versus digital. The great debate.

Opting for electronic billing is far from ‘going green’. It is simply about reducing cost (to the service provider) and improving convenience to you as the user.

Sir Nicholas Stern, head of the Government Economic Service in the United Kingdom, released the Stern Review on the Economics of Climate Change in 2006. This tackled the effects of climate change and global warming on the world economy. He used the 700-page document to demonstrate how paper and print have a better environmental footprint than electronic communications.

Printing the Stern Review emits 85g of CO2 (one copy can be read over and over again without further emissions).

Reading the Stern Review on a computer for one hour emits 226g of CO2 every time.

Burning the Stern Review to CD is estimated to emit 300g of CO2 for every copy, while burning it to DVD is estimated to produces 350g of CO2 for every copy.

Stern notes that sending 50kb via e-mail causes the same emission as posting a 10g item, with all its fossil fuel consumption in mail delivery etc.

The big difference is that reading an item on a computer emits greenhouse gases at the rate of 3.8g of CO2 per minute. Reading a piece of paper results in no additional emissions.

 

RECYCLING IS REWARDING.

An important reason for paper recycling is that it extends the period over which the carbon in the paper is locked out of the atmosphere.

Paper recovery and recycling reduces costs to local municipal authorities and frees up space at landfill sites.

Recycling creates jobs for many in the informal and formal sector.

With 65% of recovered paper used as raw material in paper mills, more than half of the country’s paper mills depend on recycled fibre and a number of them use it as their only
fibre source.

Paper can be recycled up to seven times.

www.prasa.co.za

 

Sustainable plantation management makes all the difference.

South Africa has the highest level of international certification of its plantations in the world. Over 80% of South African plantations are certified by the Forest Stewardship Council (FSC).  PAMSA members subscribe to the FSC’s Chain of Custody which tracks FSC-certified material through the production process – from the forest to the consumer, including all successive stages of processing, transformation, manufacturing and distribution. Consumers should look out for paper and wood products bearing the FSC mark of certification.

The industry has 1,6 million hectares of FSC-certified land of which only about one million hectares are planted to trees. The majority of the other 600,000 hectares are grasslands. These have been assessed by South African National Biodiversity Institute to be the best conserved grasslands in the country. It is therefore important when referring to impacts of monocultures on biodiversity, that they are considered at landscape level and not at stand level.

Our plantations require neither irrigation nor regular fertilising. The total annual water requirement/usage for timber plantations was calculated to be 428 million m3 per year, approximately 3% of the total annual water usage in South Africa. By comparison, water used for irrigating crops amounts to 7,9 billion m3 or 62% of the total annual requirement. (National Water Resource Strategy: Dept. Water Affairs and Forestry 2004)

The industry has also voluntarily reduced its plantation area by 80,000 hectares in riverine and other ecologically sensitive areas.

Further downstream, pulp and paper manufacturers have implemented water recycling technologies to reduce the industry’s water footprint.

All information supplied by PAMSA – Paper Manufacturers Association of South Africa. Visit www.thepaperstory.co.za.

Starting or growing a small business in 2012 is more difficult than ever but the right technology empowers users to cope with the changing demands market conditions place on them, delegates at the HP SMB Forum heard this morning.

 

“Small to medium businesses (SMBs) in South Africa face not only increased competition, but they also need to find innovative ways to overcome the technology challenges that exist in the market. Reliable and cost-effective bandwidth is critical to the success of the modern organisation,” says Thibault Dousson, HP South Africa Printing and Personal Systems (PPS) Country Manager.

 

HP is dedicated to providing SMBs with solutions that are tailored to meet their unique requirements. Using the HP range of Inkjet printers, SMBs will benefit from better print quality, durable ink, and lower upfront costs when compared to laser printers, resulting in increased productivity and cost-efficiencies.

 

“Our products provide first-class colour printing that lets the SMB differentiate itself through professional document management and presentation. Our innovative mobile and cloud-based printing solutions further provide users with unique ways to print from anywhere in the world,” says Dousson.

 

To this end, HP ePrint-enabled products let users print using any email-capable device. The user can simply email the printer the document, email or photograph that needs to be printed. Google Cloud print enables users to print directly to any HP ePrint-enabled printers from within any Google Cloud Print supported apps via a PC or smartphone.

 

Additionally, HP ePrint wireless printing has been designed to work with Apple’s AirPrint technology available on a range of iPads, iPhones and iPods. An embedded print function within apps on these devices will allow users to automatically find an HP ePrint-enabled printer on wireless networks within range of the Apple device and print to it with one touch, without requiring drivers to be installed or software to be downloaded.

 

“Business customers are challenged with managing a vast amount of information and need solutions that not only drive business efficiency but can also be the catalyst for future growth. Managing information is a critical component of any business process. We believe our products address these requirements and help businesses capture, connect, and communicate information more effectively than before,” says Dousson.

 

Press release courtesy of HP.

Gain working experience at shop-sa

Are you young, qualified and out of work? Do you need work experience before an employee will consider you for a job?

shop-sa, the Stationery, Home & Office Products Association of Southern Africa is looking for assistance within its events, marketing and database divisions. 

We are unable to pay a salary to interested parties, however we do offer guidance, mentorship and valuable hours spent working in a corporate office in which young candidates can gain working experience.

Offices are based in Rosebank. Send your CV to mercedes@shop-sa.co.za

More than one million solid ink machines are in use today, serving thousands of customers who produce more than six billion pages each year.  It’s a technology originally created by Tektronix in 1986 and used in computer printers and multifunction devices.

After Xerox acquired the Tektronix Color Printing and Imaging Division in 2000, solid ink became part of the Xerox line of office printing and imaging products, with early offerings focused on the graphic arts industry. The company worked on lowering running costs while improving performance and quality.  

“As the technology improved and costs were reduced, the focus shifted to office printing environments where quality and cost efficiency are important,” says Craig Green, Xerox National Channel Manager. ”

Xerox has continued to evolve its solid ink technology, and has been highly successful in the workgroup printing segment. “That is because from its inception, solid ink technology was designed as a page-printing process and has been implemented in products clearly intended for workgroups and office users,” Green adds. “Solid ink printers use page-wide print heads to produce excellent colour print quality at print speeds comparable to or faster than laser-based products.” 

Solid ink technology uses solid ink sticks instead of the fluid ink or toner powder usually used in printers. After the ink stick is loaded into the printing device, it is melted and produces images on paper in a process similar to offset printing. It is known to produce more vibrant colours than other methods and can print on a wide range of media. Solid ink printers are easy to use with recycled paper and are able to print on many different types and thicknesses of media and are much less sensitive to changes in media type than are colour laser printers.

“The sticks are non-toxic and safe to handle” says Green. “The president of Tektronix actually ate part of a stick of solid ink, demonstrating how safe they are to handle. The technology is also more environmentally friendly due to reduced waste output.” 

Compared with colour laser printing technology, solid ink generates up to 90% less printing waste because there are no cartridges to dispose of and less packaging to add to landfills.

The cartridge-free design and minimal packaging also result in:

 

•             less to manufacture

•             less storage space

•             better transport efficiency 

Cartridge-free solid ink lowers running costs by reducing the number of parts customers must replace and as a result offers colour pages at a lower cost. According to a white paper by research company InfoTrends, “The solid ink writing system is much less complicated compared to Xerography with fewer moving components and fewer replaceable supplies, which translates to the potential for lower overall operating costs.”  

“If you print lots of colour pages, solid ink printers and multifunction printers can help you realize a significant savings on 70% of the colour pages you print every day. You get exceptional value, with a total cost of ownership that’s hard to beat,” Green says.

 

Press  release courtesy of Bytes.

shop-sa has been approached by the SA Ballet Theatre and Mzansi Productions asking for a stationer willing to sponsor 1000 pencils or pens (can be half pencils) and clipboards for a production they will be holding on 19 July in celebration of their merger. The two companies that will be merging would like to have their new name placed on the pencils or pens. The audience attending the event will be an LSM 8 to 10. In return the stationer will be able to place their own logo on the pencils too and will be given special mention in the programme. If you would like to assist with this sponsorship, please urgently contact Lisa Dewberry at 011 880 1147 or lisa@shop-sa.co.za.

“I used to be your customer”

I was recently chatting to an old friend of mine who, like me, spends hours on the road traversing the lengths and breaths of the country for only one reason – our Customers! (Fortunately, we live in a beautiful Country that makes the trips far more enjoyable!) He, like many travelers, has a weakness for pies – an excuse for stopping and filling up with fuel – for body and car! He recently told me of an incident when  ‘re-fuelling’ in Ladysmith. After filling up with petrol, he entered the takeaway at the garage and went straight to the pie counter and ordered his favourite pie; as he has done at this popular garage in Ladysmith for many years. The assistant took his order and told him to take the slip to the cashier, and after payment come back and collect his pie! After an exchange of words (I feel some may have resembled a dialect of Swahili) the reason given for this sudden change of procedure was “people have been stealing our pies”! My friend now will not only support that particular petrol station in Ladysmith, but will not fill up at any of the ‘same brand’ countrywide! Knowing him as I do, he will stick to this inbred commitment until his last kilometer!

Because of a ‘system failure’ in a business’s procedure, we are ALL treated like thieves, or at best potential thieves. Perhaps that business should either move the counter, instead of inconveniencing the customer?

Another store which treats me like a criminal is a large retail/wholesale organisation that insists on employing an external security company to check my receipt after I have paid for the goods! This ticks me off to an extent that I rarely ever visit that store – unless they really entice me with a ‘never-to-be-seen-again ‘ special; and I still go there under duress! The funny thing is that these so called security staff don’t even know half the time what they are checking! Can you imagine what would happen if Pick and Pay or Checkers started doing this ridiculous procedure – their competitors would be dancing all day in the boardroom!

You see, it’s not only people that deliver service, but ‘systems & procedures’ (as well as a host of other elements). Yet people play the biggest role, as not only are they the one’s responsible for procedures, but often carry them out.

I was engaged to talk to a group of Retail Managers recently, and they informed me that part of their ‘cost-cutting’ strategy was reducing staff on a very large scale! This was to be done mostly by offering early retirement packages and ‘restructuring’ in the form of, ’Well we do have a position for you in Upington”! Now, there is nothing wrong with Upington, but rather inconvenient when you have a working spouse and school going children in Phalaborwa! Simply put, the less people at store level, the worse your service will be – full stop!

Talking about cutting staff, across the large pond in the USA, Wal-Mart, the nation’s largest private employer has been eliminating greeters on the 10 pm-to-7 am shift at its 3 000-plus supercenters over the last six months, “chipping away at a 30-year tradition of making sure all shoppers are welcomed to the store,” Bloomberg reports. Most supercenters are open 24 hours a day. This is being done in the name of ‘cost-cutting”!

However, the Greeters have been moved to other jobs within the store, such as shelf packing. They have been a fixture and the face of Wal-Mart for many years, but I’m betting that some of those greeters welcome the change. A greeter has what’s probably one of the toughest jobs in the store — being on your feet all day, blasted by outside heat and cold through the open doors, and saying the same thing over and over again. Will the elimination of late-night greeters affect the shopping experience? Is Wal-Mart making a mistake by moving away from late founder Sam Walton‘s vision for the company? We wait and see!

Oh, and then there’s the customers. Plenty of news reports indicate the challenges they can pose to these low-paid workers (and Kudos to the Consumerist for keeping excellent track of these incidents):

  • A 69-year-old greeter reportedly was fired after a customer, who set off the alarm, tried to punch him and he swung back.
  • A 71-year-old greeter was allegedly choked after asking to see a customer’s receipt. The injuries weren’t serious.
  • A 100-year-old greeter — yes, 100 — said she was knocked down after asking to see a receipt. (The incident was later ruled an accident.) The greeter, who worked five days a week, told the Milwaukee Journal Sentinel “that her employers treat her well but that she works because she needs the money.”
  • A 72-year-old greeter had to be hospitalised after he was punched in the face outside the store.
  • A 70-year-old Wal-Mart employee was assaulted by a customer on Christmas Eve after she asked to see a receipt (which the customer had). It’s unclear from news reports whether the employee was a greeter or a cashier.

So, all you youngsters in your ‘Fifties’ – get down to the gym and get ready for old age!

Until next time!

Graham.

Additional resource: consumerist.com; Bloomberg.com

Since READ was established in 1979, the organisation constantly fulfils its aim to help people in South Africa develop their skills in reading, writing, learning, information and communication. One of its most heart-warming successes has recently come to light. It concerns Julia Mphuti. When she lived in the Protea South informal settlement 21 years ago, Ms Mphuti recognised the need for someone to look after the children wandering about aimlessly, so this young woman took it upon herself to create a safe haven for them by opening Kid’s EduCare in her backyard. Over the years, Julia has given her time, her energy and her heart to her crèche, often funding its activities with her own money. She has never turned a child away if the parents cannot pay – and, no matter how hard times have been, has always provided all the children with two full meals and a snack, every day. In 2006 fate smiled on her. As part of a Lotteries-funded Early Childhood Development (ECD)project run by READ Educational Trust, Julia received training as a caregiver, which earned her an NQF Level 1 certificate, and she is currently studying for the ECD National Diploma (NQF 5), which she’ll receive in 2013. Undaunted, Julia Mphuti commutes between Ennerdale and Protea South every day. And despite her training, and all she has given over all these years, she does not qualify for a subsidy from the Department of Social Development – because her crèche is not housed in a permanent structure. Her fame has steadily grown and local primary schools can see the difference in learners from her crèche who enter Grade R. Parents from as far as Lenasia want to send their children to Julia’s humble shack-crèche! It is packed with opportunities for the children to develop – from the fantasy corner, to the book corner, to the play area with the swing and faux grass made from old carpets, all intended to develop the young minds in her care. “If we do not give children the foundation they need, we are killing their futures,” Julia says. “And I thank READ for helping me grow more opportunities.” Her contribution to the community cannot be measured in monetary value alone for it is so much more than that. It comes from her heart and defines the kind of person Julia Mphuti is. READ is proud to have been of help.  

 

 

World Kids Colouring Competition

Come and join us to colour for charity this Sunday

 

 

This Sunday, 6 May is World Kids Colouring Day! Join Staedtler at Greenstone, Clearwater Mall, Cresta, Maponya Mall and Centurion Mall on Sunday between 9am and 5pm.

 

 

 

 

 

 

 

 

After taking more than 100 online exams as well as a  practical three-day exam in Japan, Yunus Docrat, a branch technician at Bidvest company, Konica Minolta South Africa, is the fourth South African to receive the highest certification of Konica Minolta Business Technologies’ professional education, the Diploma in Color, joining the expert rank of a total of only seven Asia Pacific achievers of this qualification.

The sought-after qualification has been described as second to none in its design and scope in the entire printing market. It provides its receivers with the competencies to meet the digital world’s demand for reliable services and expert consultancy in standardised results and colour output.

More than 100 online exams have to be taken to reach certification level, such as Outward Associate, Professional, Expert Colour, Master of Colour and an additional Expert level. Once these exams are completed, the candidate is invited to Japan for the practical three-day exam. To the future applicants of the Color Diploma, Docrat has these encouraging words: ‘Study well, be prepared and know everything from the DTP applications to the Fiery Controller.’

Docrat, a production supervisor with five years experience in desktop publishing, is also the first branch technician to qualify and says that studying towards the diploma has changed both his view of- and previous experience of working with colour.

‘I have gained a great deal of knowledge and expert skills during my time preparing for the diploma. The result is that customers will benefit from highly consistent print quality and clearly defined quality standards through sophisticated colour manipulation. In addition, issues that would ordinarily have taken me a few days to troubleshoot can now be resolved in just a few minutes, allowing customers’ downtime to be at a minimum, thus not affecting their workload output,’ said Docrat.

‘The qualification has already helped me through some tricky colour situations. I have also been able to transfer some of the knowledge gained to the customer by showing them the correct workflows within their environments, allowing them to achieve their correct outputs more quickly and efficiently.’

‘We are immensely proud of Yunus and now with four Diploma in Colour recipients on board, South Africa is taking the lead in the colour expert rankings in the Asia Pacific region. Our clients embracing digital colour printing can thus be confident that they are dealing with the leaders in colour technology,’ said Alan Griffith, Konica Minolta South Africa MD.

Article courtesy of Africa Print.

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