Tag: disruption

Disruption is an inescapable and growing threat across industries in South Africa. Accenture’s (NYSE: ACN) 2020 Innovation Maturity Index shows that the majority of South African companies are vulnerable. That’s because they are playing it safe. It’s risky. The winners are innovating!

As the success of digital giants like Netflix, Google and Amazon illustrate, innovation is the source of the disruption. It is also the antidote to being disrupted. Accenture’s research bears this out. The companies that are beating disruption, just 7 percent of South African companies compared to 14 percent of companies globally, are innovating, using digital technologies to grow and reshape their core businesses into new businesses.

As part of its Innovation Maturity Index study, Accenture conducted interviews with 100 South African C-suite executives from 14 industries to understand how their businesses are preparing for, and are positioned to deal with disruption. Their responses are cause for concern:

  • 75% expect their industry to be disrupted by new innovations in the next three years, especially from new competitors and technologies.
  • 50% say they are not prepared for disruption.
  • The research indicates that all industries are facing disruption, but 85% (versus 70% of companies globally) of South African companies are highly susceptible to future disruption.

Why is innovation so important in South Africa right now?

“South Africa is facing enormous challenges, including high unemployment, low skills levels and declining productivity and competitiveness. To stimulate economic growth, it needs to address fundamentals like improving infrastructure, healthcare, education, and broadband reach and costs. Rapid advances in digital technologies offer both business and government a way to rapidly address key issues, introducing efficiencies and new business models, and opening up immense opportunities for value creation,” says Vukani Mngxati, CEO of Accenture in Africa. “But unleashing that value requires a strong innovation capability.”

“In South Africa, and globally, the gap between companies on the winning side of innovation and those being disrupted by it is growing,” says Rory Moore, Innovation Lead for Accenture in South Africa.

“When companies are in the middle of disruption, they typically make cautious moves, focussing their energies and resources on the core business that generates most income and profits. Unfortunately, as disruption escalates and business growth begins to moderate, companies that have not kept pace with change – by, for example, adopting new technologies to increase efficiencies and business agility, innovate and enter new markets – find themselves ill-equipped to compete. For them, the economic opportunity is often visible but unreachable; it cannot be attained with their existing business models or capabilities.

“Companies that aim to drive growth and thrive in the digital era have much to learn from the disruptors – the high-growth companies that are on the winning side of disruptors.

What do Innovation Champions do differently?

“Companies that thrive in the age of disruption actively innovate. They have, and are investing in innovation aggressively. And they take a focussed and decisive approach to innovation: it is change-oriented, outcome led and disruption-minded,” explains Yusof Seedat, Accenture Head: Global Geographies Research, Growth and Strategy.

These companies build deliberate innovation structures and they embed innovation in their everyday business by adopting seven innovation practices – they are hyper relevant, network-powered, technology-propelled, asset-smart, inclusive, talent rich and data-driven.

“Of these practices, becoming data driven is the alpha trend among Innovation Champions,” notes Seedat. “It powers a ‘wise pivot’, enabling these companies nurture and grow their core while also growing and scaling new business.”

“Playing it safe could cost companies in South Africa everything,” says Mngxati. “Companies must innovate, adopting new technologies and approaches to strengthen their core and pivot to the new if they hope to hold their position in a disrupted market. Taking the first steps now can help them build a foundation that will enable them to grow, compete and thrive in a digital era.”

Uber Eats unveils food delivery drone

By Milly Vincent for Mail Online

Uber Eats has unveiled its newest drones which will be used to deliver food in San Diego, California, next year.

The new drones feature ‘innovative rotating wings with six rotors’ – a design that has previously only been featured in flying car prototypes.

Uber Eats said it believes the rotating wings will help to avoid food spillages, as the design enables a smoother transition between vertical takeoff and forward flight.

The rotors will be positioned vertically for takeoff and landing, but move into a forward position ‘for increased speed and efficiency during cruise flight’, reports The Verge.

NASA veteran Mark Moore designed similar rotors for the company’s flying-taxi prototype which is also part of the companies Uber Elevate project – to take its services to the sky.

Test flights will be carried out next year in time for a commercial launch in 2023, reports The verge.

The Federal Aviation Administration gave Uber permission to test drone delivery in San Diego, with a cruising altitude of below 400 feet – to comply with drone regulations.

According to Uber the drone will be able to load and deliver a meal for two in just eight minutes – and will only be able to fly 12 miles to make a delivery.

It is also expected to be able to hover in up to 30 mph wind speeds, reports The Verge.

Other delivery companies have also tried their hands at the niche market with Alphabet Wing, partnering with FedEx and owned by Google’s parent company, deploying its first drones in Virginia last week, reports The Verge.

By Kevin Lancaster for MyBroadband

Discovery Bank, Bank Zero, and TymeBank – South Africa’s newest banks – are set to “disrupt” the local banking scene in 2019.

Disrupt – an almost meaningless word which is akin to “millennial” in terms of its flagrant use by anyone who wants to show they understand trends and marketing – is not enough, however.

The new banks must destroy everything in their path, particularly the banking fees South Africans pay today.

We recently showed that compared to Bitcoin and Ethereum, and their respective blockchains, local banks are slow and cumbersome.

Where it took Bitcoin and Ethereum under 10 minutes to send tokens from one account to another, a local bank transfer from Standard Bank to Absa took almost 12 hours.

The cryptocurrency transfers did accrue a small transfer fee while the bank-to-bank transaction was free, but there are no monthly fees for most cryptocurrency wallets – unlike a bank account.

The potential of cryptocurrency transactions is not truly realised with local payments, however, and where they truly shine is in international payments.

While maintaining fast transfer times regardless of where in the world you send tokens, the fees you pay do not change. If you send Ethereum to Durban or Dubai, it will take the same amount of time and you will be charged the same fee.

The same cannot be said for bank transactions. “International fees” are charged when you make a payment across a border.

A practical example of this is when you pay your Netflix subscription fee, you pay extra – as the money goes to the company’s operation in Amsterdam.

A Netflix Premium subscription costs R169, with a transfer fee of R4.65 added on top of this.

International fees
These bank fees extend to “currency conversion” charges, too, which means that if you make a payment in an international currency with your card, you will have to pay for the pleasure.

Nedbank, Absa, FNB, and Standard Bank all charge this fee, which ranges from 2% to 2.75% – depending on which bank you are with. Capitec told MyBroadband that it does not charge a currency conversion fee.

While 2% does not sound like much, this accumulates rather quickly when making multiple transactions.

I discovered this on a recent work trip to the US, where I used my South African credit card to pay for items in US dollars.

After checking my online banking a couple days into my trip, I immediately switched to drawing cash for the day and sucking up the once-off withdrawal fee as opposed to making all payments with my card.

And yes, there is an “international fee” when withdrawing cash from an ATM in a foreign country.

Before switching to cash, these are the international fees which I accrued on my card:

R5.47
R6.99
R16.03
R13.56
R4.60
R0.79
R8.01
R3.37
R5.48
R313.72

The total: R378.02.

Whether these fees are implemented by the local bank, international banks, or a combination of the two is irrelevant – as the consumer this is what you pay.

Admittedly, the example of international transactions is an extreme one but it nonetheless serves as a reminder of the culture of fees worshipped by local banks.

These fees extend far beyond international payments and see users being charged to send an email payment confirmation to a recipient.

Before you fill in the text box at the bottom of your online payment confirmation window, entering the beneficiary’s email address so the bank will send them a mail confirming your payment was made, first check how much it will cost.

For me it was R1.10. My bank charged me R1.10 to send an automated email confirming a payment – another discovery made during the fee investigation.

Discovery Bank, Bank Zero, and TymeBank have all talked a big game about disrupting the local banking scene when they launch.

Let us hope they can deliver on their promises and that they will do more than merely disrupt – they must destroy and replace.

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My Office News Ⓒ 2017 - Designed by A Collective


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