Lauri Elliott

This is an article I wrote for Brainstorm Magazine of South Africa. It appeared in the December 2009/January 2010 issue.

The penetration of mobile phones and mobile data will serve as catalysts for a growing mobile gaming market in South Africa. The question is how well the industry will navigate these opportunities.

Globally, gaming is a hot market – from console, to PC, to online, to mobile. Pyramid Research’s recent report, Mobile Gaming in Emerging Markets, says that mobile gaming will grow at least 20 percent per year from 2009 to 2014 in the Africa and Middle East regions.

Jan Ten Sythoff, research manager for Pyramid Research, says that mobile phone and mobile data penetration serve as catalysts for this market. While Africa has good mobile phone penetration, there are differences between consumers in mature markets like the United States and those in emerging markets like Africa.

Says Matt Benic, a developer with I-Imagine: “While we have high mobile phone penetration, our potential consumers in South Africa typically have low levels of disposable income (also typical of the rest of Africa).”

This means handsets used by consumers are lower-end devices, and the cost of games needs to be lower than in developed markets. In addition, consumers would not necessarily have previous experience with other gaming platforms like consoles and PCs. Says Danny Day, owner of QCF Design: “The first provider that offers a truly engaging, massively multi-player, micro-transaction-enabled game on phones is going to win big.”

Benic says there is also huge opportunity with sports, like soccer, and SMS-based games in South Africa. A “taxi”-driving game might be an appealing concept in South Africa too. This is tapping into what consumers know and feel comfortable with.

Sythoff says the challenges facing emerging markets include game cost, affordable handsets and piracy.

Benic mentions that the misperception that game development is inexpensive is a challenge in the local industry. Companies that would pay to have games developed for advertising and promotional purposes are often shocked when quoted a price.

Furthermore, according to Benic, the lack of sufficient numbers of skilled developers is slowing down the mobile game development industry. And then there is the ongoing issue of the cost of internet access. There are many free and inexpensive tools online to support mobile game development but the data usage expense can be prohibitive for small firms.

Challenges impact the consumer too, says Day. “Poor visibility, commodity-focused instead of product-focused marketing, shoddy after-sales support and lack of penetration by local mobile developers means…potential players have to wade through sheets and sheets of poorly advertised games.” In addition, the games are not localised to suit consumers.

Challenges notwithstanding, Sythoff shares several business models with the potential to succeed in African markets. First, there is gaming for advertising, or adver-gaming: players are allowed to download games for free, but the games contain advertisements. The vendor and developer generate revenue by selling advertising space.

A second potential business model allows consumers to play games for free until they reach a certain level, after which they must pay. This is a good way of getting consumers hooked on a game, providing motivation for them to pay to continue.

In some instances, a game developer will work with a data provider to provide games. Both share the revenues while keeping the price of games lower. Day says QCF Design is looking into another business model – subscriptions.

No matter which business model is employed though, says Benic, a game has to make it the first month it is released.

Sythoff says there are potential spinoffs in digital content and educational games, while Day says his firm “has had some success with mobile-based learning games”.

Sythoff points out that new mobile game developers need to address several issues. First, they have to find channels to reach potential consumers. This will normally result in partnerships with mobile phone operators or aggregators. Second, developers need to consider how they will bill the end-user.

Third, games should be localised to match language and culture.

Unlike the iPhone Appstore, which shook the US mobile game industry by allowing new and more agile mobile developers to enter the market, local developers find it difficult to enter the market. Day says “commissioned game development is currently more lucrative”.

Up, up and away

As for the future, Day provides several insights. “New studios are applying lessons learned from digital distribution games on consoles and PCs to the mobile space. These are studios and products that will change the mobile gaming sector in South Africa.”

Also, says Day: “Watch content creators that produce content for local consumers, as well as the Indian mobile game development industry… (it) will inform developers here.”

Finally, Day says to track MXIT.

“MXIT is a heavyweight in the industry. It’s one to watch for future growth in the mobile game sector, especially if it acts as an aggregator for quality local content.”

The sector will also be tamed. “New gambling control laws and changes to premium cost services should help reign in the `Wild West’ nature of many mobile businesses,” according to Day. This will reduce exploitation of consumers.

Overall, two possible scenarios will develop in South Africa’s mobile game sector. Mobile games will be overtaken by flash- or browser-based games as phones evolve, if the mobile game industry does not respond on time. Or, the industry will shift from its current business models to more customer-focused models, which focus on alternative revenue streams.

Sythoff says the mobile game sector is complex. Navigating this complexity successfully is a key enabler for firms wanting to enter this space. Success will come to firms like Apple, which are able to deconstruct the complexity and tap into the potential of the sector. With the potential revenue stream and under-tapped market, it’s definitely a sector to consider.

Originally posted at htp://www.afribiz.info/?p=2137.

Shashank Bengali of McClatchey Newspapers wrote “Africa is gripped by one of the greatest population explosions ever recorded” in a recent article entitled, “Africa’s Perilous Baby Boom.” In fact, while it is widely reported that India’s population (1.6 billion projected) will surpass China’s population (1.4 billion projected) by 2050, Africa will beat both with a population close to two billion according to the United Nations Population Division.

Bengali paints a picture of the horrible conditions under which and into which many children are born in Africa.  However, the problem is the conditions not the population growth.  Africa is a continent that has vast resources, which if managed effectively, can sustain a booming population.  In addition, Africa as a region has one of the lowest consumption rates globally when compared to developed countries. 

In fact, this population boom is a tremendous global business and economic growth opportunity.  Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, shares the world can no longer expect U.S. and Western households to drive global economic growth.  Developing markets like China, India and Africa are the future economic growth engines.

This shift sounds frightening to many in the West, but no one has to lose.  Businesses and entrepreneurs globally need to shift their strategy to account for this phenomenon.  Remember, the United States served as a major channel for China and other countries to grow their economies.  The pattern does not have to change, but the roles the actors play.  Africa, China and India can be used to drive economic growth in the United States, Europe, and elsewhere, in the future.

Part of this shift requires a change in the way the African population is viewed.  C.K. Prahalad, in “The Bottom of the Pyramid,” points out that businesses have traditionally treated the poor and disenfranchised as victims instead of consumers.  Businesses tend to devalue these populations without taking into account the current and future value of these markets, if developed.  Businesses have the opportunity to create their own consumer markets while solving endemic problems like poverty.

Once businesses see Africans as consumers, they need to consider the challenges faced by their consumers and those challenges in serving them, including those painted by Bengali.  The key is to design a business model accounting for and overcoming these challenges. 

For example, Africa lags far behind in broadband coverage, yet the World Bank noted that broadband coverage contributes to economic growth.  Also, if it is available, it tends to be expensive.  Two companies, SEACOM and O3B Networks, have taken on the challenge to cover Africa with affordable broadband within five years.   SEACOM has already landed in over ten countries in Eastern and Southern Africa.

In addition to the potential, businesses need to consider the importance of timing and position.  Now, is a perfect time for many businesses to position themselves in the African consumer markets.  Nations recognize this.  While China looks to Africa resources, it is not the only reason.  John Lee, in “China Woos Africa” points out that China is positioning itself to take advantage of the growing (in size and income) African consumer market. 

In another example, could the potential in the African consumer markets be one reason the U.S. government is shifting from supporting food aid in Africa to investment in agricultural systems?  Remember, part of the role of  diplomatic missions in foreign countries is to further the interests, including economic, of a nation.

On a final note, the issues and problems of Africa continue to provide fodder for the media more than the potential of Africa.  But there is a hidden message in all of it for entrepreneurs.  Entrepreneurs will recognize the challenge of Africa not as perilous or problematic, but as potential and powerful markets.

This is an article written by Hilton Tarrant and myself as part of the ICT in business sector series for Brainstorm Magazine in South Africa.

There is no question that the healthcare sector in Africa represents a huge challenge and opportunity. The question is how, and how well, ICT will meet the challenge.

Most African countries have a critical shortage of healthcare workers, and the majority of African healthcare systems are low-ranked internationally, according to the World Health Organisation.

Dr Dirk Koekies, Chief Executive Officer of GeoAxon, states plainly that the challenge is “creating a healthcare system out of nothing, which can deliver quality basic primary healthcare services to those without it”.

While this situation is a critical challenge, it presents a tremendous opportunity for ICT in the health sector. The opportunity is particularly good in the mobile sector (mHealth) due to the penetration of mobile phones on the continent.

The United Nations 2009 report mHealth for Development says: “Mobile phones reach further into developing countries than other technology and health infrastructures.”

One mantra for mHealth is “make available the right information at the right place at the right time and in the correct form,” according to a 2008 Rockefeller Foundation report.

This mantra, when actualised, translates to several benefits, according to Tyson Greer, CEO of Ambient Insights.

First, clinicians and patients can make more informed and intelligent decisions. Second, real-time data is provided for communication, consultation and notification. Third, mHealth increases efficiency and speed of care, and increases productivity of healthcare workers. And finally, it provides on-demand access to information and continual learning for healthcare professionals.

There is a unique opportunity to provide ICT-based products and services to the private healthcare sector.

Firstly, because private sector healthcare already represents a good portion of services provided to Africans compared to public healthcare. And secondly, African governments are using private healthcare providers to augment and enhance public healthcare systems, which are overtaxed.

This creates a sizable opportunity for ICT firms. Specific business opportunities in mHealth, according to the mHealth in Development report, include education and awareness, remote data collection, remote monitoring, communication and training for health care workers, disease and epidemic outbreak tracking, and diagnostic and treatment support. Koekies also says that developing centralised, electronic medical information records is a low-hanging fruit opportunity.

GeoAxon is delving into business opportunities presented in diagnostic and treatment support. Its “Tele-medicine Doctor in a Box” allows a doctor to examine a patient over the internet, using devices the patient interacts with locally. These devices transmit data, which would normally be assessed in a face-to-face consultation with a doctor, remotely to the physician.

While mHealth seems to be gaining momentum, it still has several challenges. mHealth is still in the pioneer stage with many projects in pilot, but little empirical evidence to prove its impact. Koekies indicates that funding for innovative solutions is still difficult to come by. And while the technology may be there, the ecosystem for the mHealth sector is still immature.

Recognising that eHealth*, and mHealth, are still emerging markets in Africa with high potential, ICT firms might want to first look for low-hanging fruit opportunities and those that leverage its strengths.

Big opportunity

The healthcare market is huge. A recent report by research and consulting outfit Markets and Markets says the healthcare IT systems market will be worth $53.8 billion in five years’ time.

One of the major areas of growth in the space is tele-medicine. This is by no means new technology, with policies put in place and applications created over a decade ago.

A new push, by networking giant Cisco, is through a pilot programme demonstrating that tele-medicine is real and it works. The so-called HealthPresence programme saw remote clinics linked up in Aberdeen, Scotland and San Jose, California.

This service provides what Cisco terms “care at-a-distance over the network”. It uses Cisco’s TelePresence teleconferencing technology, with patients and physicians able to see life-sized images of one another. The system also collects physiological data from a variety of linked devices such as a stethoscope, blood pressure cuff, pulse oximeter and other diagnostic equipment.

The Aberdeen trial started in January last year and found that 90 percent of the patients who used the technology were satisfied with the experience, 95 percent said the visit felt confidential and 93 percent said they would recommend it.

“In almost every case, we could accurately identify the degree of urgency and make a diagnosis,” said Dr James Ferguson, national clinical lead for the Scottish Centre for Telehealth.

He added: “Cisco Health- Presence can enable us to deal safely and effectively with 90 percent of the cases we see.”

The Medical Research Council is currently running five separate tele-medicine projects around the country.

Obviously bandwidth constraints mean that the implementation of tele-medicine is difficult in both South Africa and Africa. In addition to bandwidth, the MRC identifies other obstacles such as the lack of easy-to-use, robust diagnostic instruments and no dedicated tele-medicine centre to act as a hub for tele-medicine.

The deployment of terrestrial fibre networks in South and East Africa, as well as the commissioning of Seacom, has helped solve the bandwidth problem, however.

At a recent exhibition, Seacom showcased healthcare teleconferencing applications, and earlier this year at GovTech 2009, Moses

Mtimunye, then acting CEO of Sita, said that in the near future, similar technologies to Cisco’s TelePresence “will make for commercially available tele-medicine projects providing people in rural areas with world-class healthcare services”.

The national Department of Health says its long-term goal is to “make tele-medicine live up to its potential as a valuable tool to improve access to high-quality and cost-effective health care services in South Africa”.

Beyond structured implementation of tele-medicine systems, Cisco believes that HealthPresence could mean a revolution: “Instead of making a dash to an urgent care facility or emergency room, what if you could use your television or other networked device to connect with a medical centre?”

Cisco believes this is not fantasy, it reckons it could become reality within the next three to five years.

*eHealth is the use of ICT for health services and information.

Originally posted at http://www.blogtalkradio.com/art-of-biz.

In this segment, we discussed a critical contributor to building a business – capital.  But, we didn’t take the normal road in discussing capital.  We spoke of social capital.  Author of “Achieving Success through Social Capital”, Wayne Baker, defines social capital as “the resources available in and through personal and business networks.  These resources include information, ideas, leads, business opportunities, financial capital, power and influence, emotional support, even goodwill, trust , and cooperation.”

However, the question concerning social capital in business is “how to translate social capital to the bottom line.”  This is where our guest expert, Verna Allee of Value Networks, really opened our eyes.

First, social capital is held within social networks.  Verna indicated that we participate in them on a personal level.  The network does not have a shared purpose working toward common objectives.  However, to maximize social capital we need to evolve the relevant social networks to what Verna calls value networks.  Value networks are people who come  together in a loose association to achieve some business, economic or social good.

Verna adds that value networks actually marry both the tangible assets, e.g., cash, buildings, and the intangible assets, e.g., social capital and human capital, to provide a complete picture of your business strength.   For example, if intangible assets represent 50% or more of the value of your business as research says, a business valued at $500,000 based on its financial would really be valued $1,000,000 at minimum.

To translate intangible assets to the bottom line, Verna says businesses need to first measure performance both in financials and non-financials.  Second, businesses need to identify the people and their roles in the value network.  Third, businesses need to identify the transaction flows, which are both formal/tangible and informal/intangible, between the roles. An example of a formal/tangible flow, or deliverable, is a product.  An example of informal/intangible deliverable is information.  Once businesses are able to identify and map these elements, they can see both the strengths and gaps in the value networks.

Value networks have tremendous power to help businesses cut costs, grow and manage risks.  For example, once the value network is mapped, an entrepreneur can identify costly and inefficient areas.  In another case, you can use the value network to identify new growth opportunities in product and service offerings.

In actuality, using social networks and value networks goes hand in hand.  However, each serves a different role.  For example, social networks are great for company, brand and product awareness activities.  Value networks helps you identify and manage ways to increase the value of your company, brand and/or product to your customers.

Take time to listen to the entire radio segment. (http://www.blogtalkradio.com/art-of-biz/2009/11/12/Power-Push-Using-Social-Capital-for-Success)

To learn more about translating social capital to the bottom line, visit http://www.valuenetworks.com.  In particular, check out Verna’s paper, “Value Network Analysis and Value Conversion of Tangible and Intangible Assets.” (http://www.openvaluenetworks.com/Articles/Value_Conversion_JIC_online_version.pdf)

To follow other topics on The Art of Making Business Happen, visit http://www.blogtalkradio.com/art-of-biz and http://artofbiz.ning.com.  To follow us in real-time, check out http://www.twitter.com/theartofbiz.

This article is one in a series about ICT in different sectors for Brainstorm Magazine of South Africa.  It was co-authored with Hilton Tarrant.

The mining sector has been slow in its uptake of technology, but the global economic crisis and long-term issues are serving as catalysts for adoption.

The outlook for the mining sector has radically changed due to the global economic crisis. This boom and bust cycle has left many mining companies considering ways to manage operating costs in order to remain economically viable. But this is not the only challenge the sector faces, according to Deloitte’s report, Tackling Trends 2009: The Top 10 Global Mining Issues. In the long run, the sector must find ways to remain sustainable amid the sea of legal, social, economic and environmental issues.

These challenges actually present opportunities for the ICT sector because technology can manage complex systems, streamline processes, reduce costs, and improve efficiency and productivity. Consider enterprise resource planning (ERP) software, which coordinates the entire mining value chain, from locating to divesting minerals. Think of radio-frequency identification (RFID) and global positioning system (GPS) technologies, which track the movement of minerals and equipment.

There are also examples of technology specific to the mining sector. The oil sector is demonstrating the potential of ultra-deep water drilling technology, which drills and extracts oil from greater water depths.

The technology is creating and extending market opportunities to the industry by accessing previously unreachable deposits. For example, new oil operations were recently announced off the coasts of Ghana and Sierre Leone.

Dr Greg Baiden, director of Penguin ASI and a global expert on automation, says: “Automation in the mining industry will follow similar trends to those in the manufacturing industry.”

It starts with a person using an automated machine to handle multiple tasks and eventually evolves to artificially intelligent, autonomous machines. Baiden says the future includes intelligent machines that can heal themselves.

For now though, automation has not reached critical mass in the sector. Large mining companies like Rio Tinto and BHP Billiton are considered early adopters. Teleoperations, or telerobotics, is the operation of a machine at a distance.

Penguin ASI’s wireless technology, which communicates with robotic equipment under water, gives a glimpse of the potential of telerobotics in solving some of the mining sector’s sustainability issues. This wireless technology will enable mining companies to extend the life of their mining operations on land. Imagine flooding mines with water to double their mining depth, and using telerobotics equipment to run the operations.

One natural result of using better technology and innovation is cost reduction in the mining value chain. This will eventually serve the economic development of Africa well. As the cost of mining decreases, it allows smaller mining firms to establish themselves.

The business opportunities for ICT providers in the mining sector can be found in the corporate, technical and value chain systems. Historically, ICT providers focus on mining as a niche. However, as enabling technologies provide broader benefit to the sector and new mining entities arise, there are increased opportunities for the ICT sector.

Mining of Data

Also, the mining sector faces serious challenges to its long-term sustainability. ICT firms, which identify gaps in the value chain and create solutions that close the gaps, leverage the value chain and contribute to sustainability, will carve their own space.

While there is undeniably a lot of technology used in the underground oreextraction part of mining, more focus is currently being put on the processing side of productions.

MD of Softline Accpac, Jeremy Waterman, says that “inherently it’s a reasonably simple business”. With mining, “you’re putting a whole lot of resources in and you’re taking production out”.

But there has traditionally been a disconnect between production and what Waterman terms the “financial side of things”, particularly among smaller miners. This has been a cause of frustration within the industry, and a number of solutions now seek to marry the two elements.

This is a classic implementation of an enterprise resource planning (ERP) system, but up until recently, “marrying the elements” was simply absent.

“In the past it was tended to be done more on a kind of matchbox,” says Waterman. “You had a whole lot of costs and you had a lot of production and you subtracted one from the other and you made a profit.”

Nowadays it’s a lot more complicated. Waterman describes how workflow management systems can be used for control, and to “capture production data that’s coming back” into the system. The real difference is made by the layering business intelligence on top of these systems.

Ugan Maistry, business unit head of Mining & Manufacturing at EOH, agrees: “Over the years, there’s been this maturity in terms of process-control and automation systems to be able to execute. There is now maturity in business systems like ERP.”

But over the past few years, Maistry says there is a newfound maturity around the systems in between the parts. He calls it ‘mining execution systems’, and describes it as very similar to manufacturing execution systems.

He likens many of the processes in mining to inventory management. “Previously, people only knew what they had and what they produced if they actually stopped their operations and took stock.”

“Questions like, ‘Where is the actual material in their value chain?’” adds Maistry.

He says some customers have been spending considerable amounts of money in the last two or three years on exactly this: business intelligence systems, which he likens to “enterprise manufacturing intelligence”.

“But,” says Maistry, “what they haven’t explored is how to extract value out of that information.”

This is the next frontier. Now, “our customers need to mine the data, and I’m talking end-to-end,” says Maistry. “It’s about looking at information in context, not just in terms of volumes and quantities, but in costs as well.” Waterman takes it one step further: “We [South Africa] are trend-setters in mining as a whole.

“There’s been an explosion of midcap miners, and that is where we’re seeing the real growth.”

Aside from ERP and workflow management systems, the back office sees similar ICT trends to those in pretty much every industry. Working costs are being rationalised, with single vendor outsourcing one way of saving money.

Licensing rationalisation is being looked at, says Maistry, and providers like Microsoft and SAP are “coming to the party.”

I had the great opportunity to share about tapping the power in social networks for business and careers with a group of Harvard graduate students on November 19, 2009. It was sponsored by the African Caucus student group of the Kennedy School of Government at Harvard University.  I’d like to give special thanks to Julia Mensah for the opportunity.  Below is a summary of the workshop.

I, myself, am a task-oriented person.  This means I travelled the hard road to learn the significance of people in getting results and business success.  My training ground was Africa for the past five years.  While expertise played a part in my success, relationships also played a significant role.

When I started to research the notion of social networks, I learned that social networking was even important for Bill Gates.  When Gates started his firm, his mother used her social connections in Seattle to provide Gates access to key business people.

One of my biggest observations is that social networks are very important when one is initiating a new idea, whether in business or covering social issues.  So, just as we spend time developing the next greatest idea, we need to focus on developing the ecosystem that will support the idea through its lifecycle. 

Cultivating your network is an intentional activity.  It’s easy enough to understand because we know that relationships take work. 

The workshop highlighted practical means for cultivating your network.  For example, sharing useful information with people is a simple, but effective way to provide value to others.

To learn more, you can download Tapping into the Power of Your Network (150) presentation.  You can also listen to a recent radio show, “Power Push:  Using Social Capital for Success.”

This is a post-show note for the radio segment, “Power Push:  Using the Strength of Leadership.”  You can check out other radio broadcasts I host at http://www.blogtalkradio.com/art-of-biz.

We focused on the role of leadership in business on November 5, 2009.  In research done by Dr. Bruce Winston and Kathleen Patterson, more than 90 variables of leadership were identified.  That can make the task of understanding, much less acting upon, leadership complex.  However, the correct working definition of leadership upon which an entrepreneur or organization acts makes all the difference, particularly during challenging times.

Our conversation started with a definition of leadership by Dr. Myles Munroe, “Leadership is the capacity to influence others through inspiration motivated by passion, generated by vision, produced by a conviction, ignited by a purpose.”  Brett Johnson, developer of the LEMON Leadership model, says this is a picture of the visionary leader.  But, he adds, leaders also allocate resources and build structures in which people can be successful.

Brett agrees that everyone is a leader in space unique to them.  This fits well with the leadership paradigm proposed by Charles Manz.  First, a person learns to lead him or herself (self-leadership). Second, a person becomes a leader of others.  Third, a person helps others become leaders (super leadership).

In this paradigm, our organizations and society is filled with leaders.  Some ask the question, but there have to be followers right?  True.  A person leads other in his or her unique space while following others in their unique spaces.  As Brett points out, this is a characteristic of the shift from hierarchical (control-centered) organizations to networked (authority-centered) organizations.

Brett brings a new perspective with the concept of leadership identity.  Leadership identity is a blueprint, or DNA, of who you are as a leader.  As with your psychological identity, it is not something that can be changed.  However, they both can be discovered as you learn more about who you were designed to be.

In the LEMON Leadership model, a person’s leadership identity can be characterized in five leadership types – Luminary, Entrepreneur, Manager, Organizer and Networker. Brett says that people have a primary and secondary LEMON leadership type.  He also found a leader resorts to the strengths of his or her primary LEMON leadership type during the best times, but resorts to the weaknesses of his or her secondary LEMON leadership type during the worst times.

With all the insights we discussed, it still comes back to the question how does leadership make a difference in my business?  Simply, leaders are people who make things happen.  Brian Klemmer describes these type of people as “creators, go-getters and aggressive producers in society.”  Sounds like the entrepreneur, right? Because you are one of these people, you can transform a failing business into a successful one.

But…And a BIG but.  Klemmer points out that these individuals often lack ethics.  On the show, Brett and I looked at the current economic crisis in the leadership context – greed overrode ethics.  Leadership in business and society is not about how much you can get for yourself, but how much you can get for others and yourself in a positive, sustainable manner.  It’s about creating win-win situations.

So, when we speak of the “rise of the entrepreneur,” we are not only speaking about the potential of the entrepreneur to create monetary prosperity but also to address society’s issues – poverty, illness, crime.

There was so much more that we discussed on the show.  Take the time to listen. (http://www.blogtalkradio.com/art-of-biz/2009/11/05/Power-Push-Utilize-Your-Strengths).

If you would like to learn more about the LEMON Leadership model, you can purchase the book at Amazon.  To contact Brett Johnson, visit The Institute’s website (http://www.inst.net).

And don’t forget to stay connected with The Art of Making Business Happen community at http://artofbiz.ning.com and http://www.blogtalkradio.com/art-of-biz.  You can even join the community.

“The process for seeking capital, or funding, for a business is an ongoing task that entrepreneurs need to understand,” says Patrice Backer.  Mr. Backer is Chief Operating Officer for Advanced Finance and Investment Group (AFIG).  He joined us for our November 4, 2009 segment, “Preparing Your African Venture for Investors.”

We opened the show with an overview of private equity funding options for businesses based on their lifecycle.  There are essentially two phases – start-up and growth/expansion.  During the start-up phase, businesses seek pre-seed, seed or early stage funding.  This start-up phase is connected with what its called venture capital.  Newer firms present higher risks, so there are certain types of investors, venture capitalists, who focus on these types of firms.  Backer noted that venture capital is still not a strong option in Africa.  The exception is South Africa which has a more mature market.

In the growth and expansion phase of an existing firm, there are also three funding cycles – second stage, third stage and bridge funding.  There is also an option of buy-out.  Growth and expansion funding for existing firms is the focus for the majority of private equity firms with an African portfolio.  Backer explains that it provides a good middle ground for investors – they get good performance with lower risk.

Backer says that investors in private equity funds in Africa are development institutions, private sector or a combination.  He says that development institutions, often affiliated with governments, have a higher tolerance for the risk environment in Africa so they are consistent contributors.  When the global economic crisis hit, it was private sector contributors who mostly pulled out of African investments.  However, it’s important to note the predominant reason for withdrawing investments was the need for cash not a lack of performance.  In fact, the only African country that had negative growth during this period is South Africa.

When firms are looking for private equity funding, Backer has three recommendations.  First, the firm should have a solid business plan.  Second, the firm should be organized, demonstrating it can handle all aspects of the business operation from customers to legal requirements.  Third, the owners should not shy away from hiring professional, e.g., financial and legal, to help them with the process.

Backer notes that there challenges which limit the private equity sector in Africa.  First, the legal and institutional frameworks conducive to private equity firms still lag in Africa.  Second, investments come mostly from foreign sources instead of local.  Once more local investments occur, it will shore up the number of foreign investors that come to the table.  One of the recent success stories is SEACOM, the undersea broadband cable provider for Africa.  SEACOM had a strong showing of both local and foreign investors.

To learn more from this insightful discussion, listen to the recorded show.  To learn more about AFIG, go to http://www.afigfunds.com.  To stay in the mix of venture capital and private equity opportunities in Africa, you may want to join one of the online communities like VC4Africa.

For additional resources about doing business or investing in Africa, go to our site – http://www.afribiz.info.

While the world is struggling with economic crisis and social unrest that will result, Christians need to understand the times.  The Christian community was forewarned of this crisis, but many refused to listen.  If you did not listen before, listen now and learn about the good news of what God is doing.

John F. Kennedy said that the Chinese word ensemble for “crisis” means both danger and opportunity.  Paul spoke of a great door of opportunity open to him, but having many adversaries. (1 Corinthians 16:9)   Opportunity and obstacles go hand in hand.

The shaking and shifting we see occuring in world systems is the change of an age, of a generation.  While disturbing and unsettling, we need to focus on living in the new season, the new age.

If we see situations through God’s eyes and we trust Him, we have peace.  The Word says that there will be stability in our times.  During these times, we are the agents of stability as we are used as God’s vessels to bring His will to the earth.

The new age is the Vision Society.  A society based on the kingdom of God.  While the world systems are shaking, this kingdom is arising from the shadows to bless God’s people and bless the nations of the earth.  This is an age of strength for the true body of Christ.  This is an age where we will tangibly be the head and not the tail.  There is no reason to fear what is happening, but every reason to have faith in God.

This post is about sharing what I understand of both the sacred and secular view of this new age.  First, you can read another blog post, “Vision Society: An Overview,” to acquaint yourself with how the Vision Society will appear in the world (secular).  Second, you can watch or listen to the teaching, “Vision Society: A New Age,” to learn the spiritual (sacred) strategy and structure behind the Vision Society.  You can access this teaching below.  May you  be richly blessed.

Video Teaching
Audio Teaching
Slides

One of the paradigm shifts in our global society is moving to an entrepreneurial culture.  This means that the entrepreneurial “lifestyle” will be a significant influence moving forward.  This cultural change will influence companies and consumers alike, so businesses need to understand what will influence success in this new age.  One of the defining characteristics is creativity. 

We had an energizing show about creativity and business on October 29, 2009.  We were joined by Dr. Lynne Levesque, a creativity expert and author of “Breakthrough Creativity.”  Our show discussed how creativity is a strength and imperative in business, as well as the thought that everyone is creative.  The concept that everyone is creative aligns with the concept that everyone is an entrepreneur, or someone who creates.

Dr. Levesque presented an excellent definition for creativity, “ability to produce different and valuable (useful) results.”   She said that people, who were considered creative throughout history, produced something of value.  It wasn’t just about brainstorming ideas.

Another aspect of creativity is its relationship with innovation.  Levesque says creativity is something that belongs to an individual while innovation is the ability of an organization to pull out creativity in its employees to produce great products and results for its customers.

Levesque supports the thought that everyone is creative, but each person’s creativity manifests differently.  It’s something that is within every individual.  The creative process, including tools and techniques, is what develops the creativity within individuals.

The eight Creative Talents, e.g., Visionary, Harmonizer, are aligned with the eight personality types proposed by Carl Jung.  Levesque says all the Creative Talents are necessary in successful business and on teams.  It is interesting to note that all the Creative Talents are at work in every person, but in varying degrees.  A person will have a primary and auxiliary Creative Talent.

In closing the discussion, Levesque spoke of the importance of entrepreneurs knowing their creative strengths, then determining if they and/or their teams represent all eight Creative Talents.  Also, entrepreneurs need to:

• find ways to respect the differences in the Creative Talents
• remain open as a leader
•  work on a culture incorporating creativity
• have goals and metrics.

In all, the process to develop the creative culture is embedded into the team building process, not a separate task.

To learn more about the eight Creative Talents, access resources and contact Dr. Lynne Levesque, go to http://www.breakthroughcreativity.com.  To listen to the show recording, go to http://www.blogtalkradio.com/art-of-biz/2009/10/29/Power-Push-Living-Life-as-an-Entrepreneur.

To share in other discussions on The Art of Making Business Happen, check out our show page at http://www.blogtalkradio.com/art-of-biz.  You can also follow us on Twitter at http://www.twitter.com/theartofbiz.  Join our online community to become more involved at http://artofbiz.ning.com.