E-Business
Platform Economy Of The Future, Pathway To Drive Growth, Jobs Across Africa
By William Mzimba
Many companies, whether they realize it or not, have already taken steps to embed themselves into the digital ecosystems that will drive their growth in future.
However, the pace of adopting new digital platforms for doing business needs to increase – especially in Africa. These platforms are business models that create value by facilitating exchanges between two or more interdependent groups, usually consumers and producers.
According to the Wall Street Journal platform companies are major drivers of innovation as the top companies set the standards for the digital transformation taking place around the world. Traditional companies are challenged to keep up or risk being left behind. As platforms become the new normal for how business is done, African companies must seize this opportunity to begin to build a new digital value chain.
Already, more than a quarter (27%) of the executives Accenture recently surveyed report that digital ecosystems are transforming the way their organizations deliver value. And we found that 81% of executives say platform-based business models will be core to their growth strategy within three years.
The mandate for leaders is to capitalize on new relationships, building a network of digital partners that will not only enhance their existing business, but also allow them to forge their way into newly emerging digital ecosystems.
What we are seeing is that entire ecosystems of customers are aggregating around several new digital platforms, and businesses are more motivated than ever before to take advantage of these entry points.
Communication platforms like WeChat and WhatsApp, and Artificial Intelligence intermediaries like the Google Assistant, Alexa, and Siri represent distinct ecosystems delivering unprecedented access to customers – and businesses are flocking to them.
A couple of examples include Hyatt Hotels, which uses Facebook Messenger to let guests do everything from booking and checking existing reservations to ordering room service during a stay, while Capital One bank developed a ‘skill’ for Amazon Echo’s Alexa, allowing people to check their accounts and pay credit card bills via the Echo device.
It is little surprise that the trend two of our Tech Vision 2017 study highlights that in the State of the Cloud survey 95% of respondents reported using public, private, or hybrid cloud technology, while the CIO Strategic Partner Index run by the IDC reports that 29% of IT leaders are spending more than half their IT budget on external providers. Each platform commitment means easier future engagement with other companies on the platform using the same infrastructure.
However, of the 176 platform companies included in a recent report, The Rise of the Platform Enterprise: A Global Survey led by Peter Evans and Annabelle Gawer and sponsored by the Center for Global Enterprise, Asia has the largest number with 82, 64 of which are in China. North America has 64, with 63 in the US.
Europe is a major consumer of platform services, but it’s home to relatively few platform companies –27 spread across 10 countries, 9 of which are in the UK.
It is concerning Africa and Latin America have a number of small platform companies, only 3 of which have met the $1 billion valuation threshold for inclusion in the survey.
More African companies need to decide which ecosystems to join and which roles to play as the technology changes are only the beginning.
How do African companies begin to close the gaps? An important way to get moving on this journey is to conduct an audit identifying how many internal and external platforms you are using and the goals for their use. Identify and address unnecessary overlaps.
Determine the platforms your organization most relies on, as well as those that most depend on you. These are the ecosystems where your organization should hold its strategic and market strengths.
Over the next 100 days, look to essentially develop a comprehensive strategy to establish the foundation for your platform business model and ecosystem.
During this phase you should appoint a C-suite sponsor to oversee a team that is responsible for championing your new ecosystem and digital partnership strategies.
Then ever the next year, leadership should have achieved comprehensive understanding of the new rules of business, developed a platform business model strategy, and started to test it with the launch of a small pilot program.
Companies should keep expanding the conversation: for instance, in the first 100 days have a strategy summit with your closest partners to understand their goals for the future. Uncover shared goals and commit to developing a strategic plan for achieving them together.
Consider your organization’s future through the lens of the biggest disruptions shaping your market, from inside and outside your industry.
Craft the ideal role of your company in this future, and develop a shortlist of partners who can help make it a reality. And remember to develop metrics to quantify the results of ecosystem participation.
Many global brands are already taking the bold steps needed. The digital ecosystem is, for instance, totally redefining what automakers do. Rather than just building cars, they’re engaging with customers throughout the vehicle lifecycle, directly managing software upgrades, diagnostics, and safety.
In the insurance industry, pulling down driving data from connected car platforms has enabled new services such as pay-per-mile insurance with newcomers like Google and Metromile to challenge the industry status quo. The opportunities are endless, no matter what industry you are in.
General Motors kicked off 2016 with a $500 million investment into ride-share platform Lyft. The move gave GM the inroads to launch their Express Drive service, an exclusive offering for successful, but car-less, Lyft driver applicants to rent a car directly from GM and get to work right away.
The program was remarkably successful in the short term, opening a new line of business for GM: by July, 30% of new Lyft drivers were requesting an Express Drive vehicle in their sign-up.
In addition to partnering with Lyft, GM also made a $1 billion-plus acquisition of the autonomous vehicle software company Cruise Automation, and another billion-dollar investment in building an autonomous vehicle testing facility in Detroit.
This shows how platforms are rapidly becoming the central hubs for the rich and complex digital ecosystems that companies want to access. Consider the fact that 70% of ’unicorn’ startups (over $1 billion!) are platform companies.
Other companies such as personal car-rental app Turo and group dining experience Feastly have introduced their own offerings, as have dozens of start-ups, each with their own angle and offering. LiquidSpace, which lists offerings in more than 500 cities across the US, Australia and Canada, offers a platform for renting workspaces and meeting rooms by the day or hour.
In South Africa, a good example of a company embracing the platform economy and reaping rewards is Discovery Vitality, while Discovery’s proposed bank is another example of the evolution of this concept into other exciting sectors.
The retail market for consumer goods in SA received a shot in the arm in 2015 when Kalahari was merged with Takealot, with the technology platform cleverly harnessed to drive growth since then.
Remember the sharing economy brings people together through technology to exchange or rent access to goods and services, so entrepreneurs are building this economy by leveraging emerging digital technologies to meet customer needs in new and disruptive ways.
Digital and mobile technologies have combined with public support to create a host of opportunities to transform the way government manages the infrastructure it has already acquired. For instance, through MuniRent, six local governments in Michigan are already renting equipment to and from each other.
How African companies and governments react to this change brought about the platform economy will define their prospects going forward.
The platforms they use will serve as the pathways to the new digital economies that will drive growth and jobs across the continent. They will form the pillars of entire value chains in the future and so African companies need to ensure they make these decisions wisely – and fast because there is no doubt that the digital partnerships African companies make today will determine how successful they will be tomorrow.
Platform economy is one of the topics to be discussed at the Accenture Innovation Conference taking place on 17 October in Johannesburg.
E-Business
NDPC to Begin Prosecution of Data Privacy Offenders from 2025
Nigeria Data Protection Commission (NDPC) will start prosecuting data privacy offenders from the beginning of 2025, according to Babatunde Bamigboye, head of the Legal Enforcement and Regulation Department of the commission.
This move is part of its efforts to enforce regulations and promote responsible data handling in Nigeria.
Bamigboye, disclosed this during a one-day cybersecurity awareness campaign with the theme “Utilising AI-Powered Services for Proactive Cybersecurity” in Abuja.
The event was organised by SOPHOS UK in collaboration with SPOKES Network and Net-Trix Solutions to foster networking with industry experts on how AI is shaping the future of cybersecurity.
Bamigboye explained that, due to the significant implications of data privacy breaches in Nigeria, the commission has embarked on awareness programmes to educate individuals on their data protection rights and inform data processors and controllers of their obligations.
To this end, he announced that beginning next year, the commission would prosecute any data controllers or processors found in breach of the law.
“At this moment, we have investigated quite a number of cases, and in terms of prosecution—as you know, as a lawyer, this means going to court—but we haven’t taken any matters to court yet.
“This is the formative stage; we understand the implications for the country as a whole. And usually, when you talk about prosecution, it also involves some criminal activities. So, at this moment, our focus has been on creating awareness.
“But from next year, we will step up enforcement in this area. What we have done so far is to take remedial actions against certain data controllers and processors who defaulted under the Act,” he noted.
He assured investors that Nigeria’s cyberspace is secure for digital transactions.
“Nigerian cyberspace is safe; otherwise, we wouldn’t be experiencing the smooth flow of digital transactions in Nigeria. It is safe but not without threats, and we are doing our best as a country to combat these threats.”
Christopher Odutola, a sales engineer at SOPHOS UK, noted in his presentation that 100% cybersecurity cannot be guaranteed, hence the need for proactive measures.
“A lot of people will come to you and say, ‘We can give you 99.9% or 100% cybersecurity.’ It’s not true.
“Nobody can provide 100% security anywhere in the world. What they can do, as I mentioned earlier, is reduce the risk for you. However, determining the extent of risk reduction is difficult.
“It’s impossible to eliminate 100% of risks anywhere in the world. What we provide is what we call a cybersecurity breach protection warranty. This warranty covers incidents such as data breaches or ransomware attacks. For instance, if you lose your files while we manage your SOC as a service, we will reimburse up to one million dollars in response costs.”
Odutola further stressed the importance of organisations reducing cyber threat risks to secure cyberspace.
“There are risks to businesses, risks from downtime, attackers, scammers, and the rest, trying to infiltrate networks.
“The risk is always high. As cybersecurity professionals, we are doing as much as possible to reduce these risks.
“The various security controls we implement—antivirus software, firewalls, email security, cloud security, network security, and others—are aimed at reducing risks. We must focus on minimising risks. For instance, we currently see risks originating from third-party suppliers and vendors.”
According to him, “We have a process called risk assessment, which helps to evaluate vendors to ensure they do not introduce risks into our environment. This is why these security controls are crucial.
“We have them in place. It’s equally important to involve senior management in the discussion, as this is often where the gap lies. Unfortunately, cybersecurity is often perceived as a cost centre.”
Harrison Oloye, chief executive officer (CEO) of Net-Trix Solutions, said the event aimed to raise awareness about cyber threats and equip users to manage potential attacks.
“What we did, as Net-Trix Solutions Limited in conjunction with Spokes Network, is to create awareness and educate the public and private sectors on how to use Artificial Intelligence (AI) to combat cyber threats.”
Speaking further on achievements in creating awareness, he said: “As part of our Corporate Social Responsibility (CSR), we educate and train as many people as possible on the dangers of cyber threats and cyber-related crimes.”
Ms. Sifon Ufot, head of Business at SPOKES Network, emphasised the need to take proactive measures against cyber threats.
“We need to stay cyber-safe because hackers working behind the scenes are not joking—they work 24/7. For us, staying proactive is essential. With the help of AI, we can stay proactive; it provides information beforehand and even prevents some attacks from reaching us.”
E-Business
Nigeria, Others Confront Flood of Cyber-Attacks
Check Point, a cyber security company has reported that Nigeria, South Africa, Kenya, and Morocco are seeing targeted cyber-attacks on government, education, and financial institutions.
In its just released 2024 African Perspectives on Cyber security report, Check Point, said that the cyber security sector is growing by 20-25% annually, fuelled by investments in infrastructure and Artificial Intelligence-driven solutions.
The report said that South Africa has seen 3,312 attacks on government institutions every week and a 90% increase in ransomware, with cybercrime costing the country nearly 1% of GDP.
Kenya, in East Africa, sees 4,719 attacks on the government sector each week, indicating an urgent need for enhanced defenses.
According to the report, Nigeria sees 4,718 attacks every week, which is one of the highest in Africa.
In a recent incident, the report states that a banking trojan assault affected 100,000 customer accounts, resulting in a $3 million loss.
Morocco is one of Africa’s most targeted countries, with 8,733 attacks on government entities reported each week, the report said.
According to Check Point, the Moroccan government recently faced a state-sponsored cyberattack that compromised classified communications, raising significant national security concerns.
“Organisations in Africa are attacked roughly 3300 times per week, if we look at the global average it is about 1 800, it is almost double the attacks,” said Hendrik de Bruin, head of security consulting at Check Point SADC during the presentation.
Check Point noted that the continent’s GDP is predicted to exceed $4 trillion by 2027, and digital infrastructure has emerged as a key driver of economic growth. However, rapid digitisation has resulted in increased vulnerability.
De Bruin explained: “We are slowly, but surely digitalising our industries, we are digitising our governments, private sectors are digitising themselves, so we have got an expanding digital attack footprint.
“We also have cloud adoption, which is not new, but picking up pace in Africa. That is another way that these attackers are using to gain access to organisations, and we also see a large uptake on cloud specific attacks as well.”
E-Business
NITDA Alerts Businesses to Rising Ymir Ransomware Threat
National Information Technology Development Agency (NITDA) has warned organisations about Ymir ransomware, describing it as a highly sophisticated cyber threat targeting corporate networks.
In an advisory released yesterday, NITDA outlined the ransomware’s advanced tactics, including memory-based execution designed to evade detection by traditional security tools.
The malware not only encrypts critical data but also exfiltrates sensitive information before encryption, demanding substantial ransoms in cryptocurrency.
“This ransomware is highly advanced and poses a significant threat to organisations, especially those in industries like healthcare, finance, and IT services that handle sensitive data,” NITDA said.
The agency warned that victims face severe operational disruptions, financial losses, and reputational damage. “Ymir’s ability to evade antivirus programs allows attackers to dwell longer in networks, expanding their reach and deepening the damage,” the advisory added.
To counter the threat, the agency urged organisations to take proactive measures, including deploying advanced endpoint detection and response solutions, updating all systems and applications with the latest security patches, and segmenting critical systems into separate network zones.
“Implementing multi-factor authentication across critical systems is crucial to preventing unauthorized access, especially for administrative accounts,” NITDA noted.
The agency also stressed the importance of a robust backup strategy. “Organisations should regularly test their backups for integrity and ensure offline copies are securely stored to avoid total data loss in the event of an attack,” it said.
NITDA emphasised the need for organisations to prioritise cybersecurity in light of evolving threats like Ymir ransomware. It encouraged businesses to seek expert guidance to strengthen their defenses against such attacks.
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