Tag: failure

The government has proposed new laws following the dismal failure of e-tolling revenue collection from Gauteng motorists, who owe more than R6-billion in unpaid tolls.
The purpose of the South African National Roads Agency Limited and National Roads Amendment Bill is to amend previous road acts to address the public outcry which arose as a result of the implementation of the Gauteng Freeway Improvement Project.

When e-tolls were introduced in 2013 as part of the project, motorists accused Sanral of not conducting proper consultation. To ensure this does not happen in other provinces, Sanral is amending the bill that governs e-tolling.

Disastrous consequences

The proposed amendments to the bill will give provincial and municipal governments more power in the implementation of e-tolls.The amendment bill acknowledges the disastrous consequences in Gauteng and aims to prevent them. The proposed bill further states that “the manner in which the public consultation process was conducted on this project was not to the satisfaction of the public, and there is a need to strengthen consultation”.

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They now want to give more power to premiers and municipal governments with regard to the roads that will be tolled. The premier will be given at least 30 days to hear out objections on a road that has been flagged for tolling. If objections are more than 55 percent the premier will have to call for a referendum within six weeks.

In the amendments, Sanral is also required to, before tolling the roads, identify “an alternative route of comparable distance, which must be a tar road, be maintained adequately and be suitable for increased usage”.

Review

In June transport minister Joe Maswanganyi said the South African government would once again review Gauteng’s e-toll policy, in the hope that a better one could be found.

“We want to come up with a tolling policy that our people will actually accept,” he said. “We are not closing our ears to what people are saying – we are working with the government of Gauteng and with Sanral, and at the end of the day, we believe we will come up with a policy on tolling that will be acceptable.”

Organisation Undoing Tax Abuse chairman Wayne Duvenage on Sunday welcomed the e-toll Plan B and believed the amendments would go a long way in protecting motorists.

“It will be better if the consultations are done by the National Council of Provinces and provinces which are affected,” he said. “This will mean the public is consulted meaningfully, unlike in the Gauteng Freeway Improvement Project – which is why it failed.”

Challenge to e-tolling

He said that if provinces were consulted, e-tolling would not be implemented – as in the case of Western Cape. Sanral wanted to toll the N1 and N2 Cape Winelands highways, but the City of Cape Town took Sanral to court in 2015, challenging the tolling of the roads.

The court set aside Sanral’s decision to toll the roads – and this, Duvenage thinks, is what will happen in most provinces.

“If they had made proper consultations in Gauteng, we don’t believe the roads would have been tolled,” he said. “It doesn’t mean that the freeway would not have been upgraded – it just would have been paid for differently. It is good that this legislation is coming through.”

He said the scheme would likely fail in other provinces.

“I don’t think other provinces will ever get e-tolls because they go beyond getting the public to buy in. It goes to the ability to administer the scheme.

Failed eNatis system

“We have a failed eNatis system and we have problems with the administration of traffic fines, and so we believe the context of the environment is one which e-tolling will fail in South Africa,” Duvenage said. He added that while e-tolling in other provinces would not take off, it would also fail further in Gauteng.

“We believe the e-tolls in Gauteng will not be around for much longer, and the reason is that the five-year collection tender comes up for renewal in just over a year,” he said. “We believe they won’t go out for tender because they are not even collecting the amount of money required.”

In February Gauteng premier David Makhura said the e-tolling system was a mistake and that no new tolled roads would be introduced in the province. It was revealed in Parliament by the Department of Transport in June that more than 70 percent of e-tolls issued were not paid by motorists.

Sanral spokesperson Vusi Mona was unavailable for comment.

By Tebogo Monama for IOL

Innovation could lead to business failure

Kodak is famous for being the inventors of the digital camera technology, yet were completely bankrupted by digital cameras. The same could be possible within your business innovation initiatives if you don’t learn and apply the following lesson from Kodak’s failure.

A quick take on Kodak

Kodak did invent the technology behind digital cameras and had it available to use. Instead, they chose to focus on innovating their film technology. Obviously once digital cameras hit mainstream and especially mobile phones, the need for actual film disappeared overnight.

One-directional innovation

Kodak had no lack in new innovations. But the problem was that their focus was more on the innovations that served their current business model, your incremental business innovation. They tried to maintain the current business model probably hoping it would run forever. But few things last forever.

Why innovation could let your business fail like Kodak

I have worked with and spoken to many companies following this approach to business innovation. Yes, there is absolutely nothing wrong with it. It is important to innovate your current products and business model. If there is still a few billion dollars left in the market, why not. Even a few millions dollars too. But what about the future? What does the future look like? How do we strike a balance between business innovation in present and the future?

Corporate ambidexterity is what is needed

What you need are two business innovation initiatives. The one focused on the current business model and the other on future revenue streams and alternate business models. At first it may not make sense. However, this is something I learnt in the dating game. I cannot date two people at the same time and the same goes for innovation departments that has to serve the present and the future.

The processes, timelines and more are different for innovating current products than for new products. The KPI’s and reporting structures are also different. Good reason to split the two. You might raise the question of increased cost and yes, I will look at that in a later article, but you have to ask yourself, do you risk ending up like Kodak?

Some questions to ask yourself

Does your market change quickly or slowly? Even if it does change slowly, you need to look at outside forces. Nokia thought phones will remain and they will always tell the networks what they can and cannot do. That changed overnight with Apple.

Are you very price sensitive? Look at the oil price. If you only have fossil fuels in your product stable, chances are you are having potatoes and not a steak dinner now.

Are the barriers to entry high or low in your market? If low, then you could wake up being extinct one morning.

I am not going into a full PEST analysis now (Political, Economical, Social, Technological). But it is handy to ask these things when you are setting up your innovation department.

By Willem Gous for BizCommunity

Sometimes knowing when to start again is the best thing you can do as a budding entrepreneur. ActionCOACH’s Pieter Scholtz discusses using a failed business idea as a platform for success.

To be a truly successful jockey, you’re going to have ride a lot of horses. There’s no way to tell how well a horse will compete on race day until it’s on the track – and by then, what you thought would end in success, might be headed for a fall. It can be the same for entrepreneurs. Few have an idea that is an immediate success – and some simply never get out of the gate, no matter how passionate or rambunctious an entrepreneur you are.

It’s a hard reality to face, but facing that failure and learning from it is crucial if you’re still going to make a success of yourself. See, a successful business should not be your ultimate goal; instead, it’s a means to an end. Your goal should be to fulfil your aspirations – to live a comfortable life, or retire to a beach house on the coast. So when something isn’t working in your business, the trick is not to abandon the sport, but to find a new horse. But how do you know when it’s time?

Reassessing your business model
The first step is to re-articulate your business model – to flesh it out on paper and really think it over. Ask yourself: Is what you’re offering merely a copy of a service or product offered by a competitor, or is it a genuine innovation? If it’s the former, it’s time to call it quits. Moderately better goods and services as well as price-cutting doesn’t work, at least not in the long term. However, if you believe you’ve got something that will truly disrupt the market place, then you should keep at it.

Once you’ve established that, it’s time to take a look at the value proposition of your business. If your stakeholders, business partners or customers are left pondering your business’ existence, it’s time to throw in the towel. Innovative or not, a business will never see profitability if it cannot improve the lives of its customers, or solve their problems.

Just be sure not to let your risk overshadow the return possible. When expenses continue to flow out and there simply aren’t measures in place to prevent your capital from steadily declining, the risk is too high. You can usually tell because running your business has become a lot scarier than it is fun.

If you truly believe you have something of value to offer, but you’re repeatedly failing to meet short-term goals, then it’s time to ask a business coach for assistance. Whether you’re a veteran business owner who’s lost customer interest or a startup who’s failed to capture the market’s imagination, continually amending poor projections is a bad sign. The advice of an experienced coach could be exactly what you needed.

A failed business does not mean the entrepreneur has failed
If your current business is all but guaranteed to fail, what you need to do is to fail fast and fail cheap. When it looks like it’s not working, it helps to be agile, to quickly adapt and take another crack at the market, or perhaps, a new market altogether.
Learn from your failure, identify a model that will generate revenue and focus on building that new business model. Pumping more capital into a failing business will not suddenly make it profitable. Instead, as the jockey, you need to find a new, faster, better horse.

Patience is a virtue
It’s worth mentioning that starving yourself should never be a part of the plan. It sounds obvious at first, but you’d be surprised by what a determined, budding entrepreneur will give up to fulfil their dream. Always remember that failing cheap also refers to putting your mental health and well-being first. Sticking with a sinking ship will only alienate your employees, friends and family, and your morale and confidence will eventually succumb to the pressure.

That includes taking care of yourself while you re-evaluate the market place. Just because you’re in the planning stages of a second, or even third attempt at a business, doesn’t mean you shouldn’t eat. Have some work to fall back on while you plan your new business. Yes, it will likely slow you down a little, but patience and preparedness is key. Urgency may mean missing the right angle of attack – a death knell to your next business, before it even starts.
Remember to ask yourself the hard questions: Why do I believe my business will succeed? What am I willing to sacrifice to make it work? And to really commit to it. To sacrifice it all for your business – especially if its plan isn’t clear – is to put the horse before the jockey, which doesn’t make a lot of sense.

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