Posts Tagged ‘concept’
Tuesday, January 5th, 2010
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.
Tags: Africa, African, business, commodity, companies, concept, consumer, current, development, distribution, EAC, east, education, emerging, gaming, in, industry, insight, law, markets, mass, mobile, mobile data, mobile phone, new, ngo, on, opportunities, opportunity, partner, partners, partnership, partnerships, report, research, sector, services, small, sms, South Africa, support, tea, the, tools, west Posted in Business Topics, Business in Africa, ICT | 1 Comment »
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Thursday, November 19th, 2009
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.
Tags: business, concept, economic, ICT, in, insight, leadership, network, networker, new, on, radio, society, the, vision, visionary Posted in Business Topics, Strategy and Vision, The Art of Making Business Happen | No Comments »
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Monday, November 9th, 2009
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.
Tags: business, concept, expert, in, innovation, new, on, radio, society, team, the, tools, vision, visionary Posted in Business Topics, The Art of Making Business Happen | No Comments »
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Wednesday, October 28th, 2009
We had a quite a discussion with Cedric Muhammad, author of “The Entrepreneurial Secret to Starting a Business without a Bank Loan, Collateral or Revenue.” The context for the discussion was the extreme environment in which we do business today globally. I described the environment as openly hostile, meaning opposing or resisting our efforts to do business. But, we concluded that entrepreneurs have the ability to tame this environment for success.
Cedric has an extensive background as an economist and entrepreneur. He even formulated a business leadership model called “Hip-Hopreneur.” A Hip-Hopreneur is an individual steeped in the hip-hop culture who is ready to become a power broker, business owner and political leader. A Hip-Hopreneur is someone who appreciates the hip-hop art form and culture, as well as the responsibility of leadership and power to influence people around the world. These are truly characteristics of successful entrepreneurs in any sector. Entrepreneurs transform lives, communities and societies.
Cedric highlighted four key challenges faced by entrepreneurs at any time – capital, culture, communication and competition. Each of the challenges when approached successfully enable entrepreneurs to navigate past a hostile business environment.
Looking at capital, we need to focus differently. First, Cedric said entrepreneurs must view themselves and their ideas as the greatest source of capital. Second, seek funding from your own social networks, e.g., college friends, family, church members. Cedric emphasized that entrepreneurs often overlook the best source for accessible capital.
Another point is that entrepreneurs go looking for funding before their concept is developed or proven. Banks, venture capitalists and angel investors look for “bankable” businesses. They want to make money, too! When entrepreneurs start, they need to recognize the funding stages aligned with the business lifecycle. Typically, when an entrepreneur first starts, he or she is at the pre-seed stage. This is where your social networks can really help you out.
Navigating culture and the competitive environment successfully is essential. If you can tap into the culture that will support your business either as consumers, suppliers, etc., you will be amazed at the momentum you gain.
In the competitive landscape, you need to be prepared for the shifts competitors may bring, such as disruptive technology. The recent shift in Facebook’s prominence over MySpace is an example. As Cedric put it, “it’s obvious MySpace didn’t see Facebook coming.” But the story behind the story, which attests to the brilliance and adaptability of the entrepreneur, is that MySpace changed its business model to focus on its strength – communities around music and entertainment.
We also looked at how the current hostile environment evolved. A key crux was lenders providing funds not based on merit of your business venture or your personal credibility, but knowing they could re-sell the loans for a profit. We moved from the foundation of exchanging value in our trade systems to exchange money without value behind it. While the crisis occurred, it is moving people back into alignment so that our trade systems will work. It’s a bit painful now, but necessary.
There are many other points made in the conversation that you don’t want to miss. Take time to listen to the recorded show.
Also, spend some time getting to know what Cedric Muhammad is sharing. He brings insights to help you with your business. Check out his three-volume book, “The Entrepreneurial Secret.” You can also catch him on www.blackelectorate.com, www.blackcoffeechannel.com and www.cedricmuhammad.com.
Continue the dialogue about “The Art of Making Business Happen” at our online community – http://artofbiz.ning.com. And listen to our weekly broadcasts at http://www.blogtalkradio.com/art-of-biz.
Signing off for now – peace and prosperity to you!
Tags: business, concept, in, insight, leadership, network, on, radio, system, technology, the, trade, venture Posted in Business Topics, New Economy, The Art of Making Business Happen | No Comments »
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Friday, October 23rd, 2009
Exporting is the commercial activity of selling and shipping good and/or services to a foreign country. It is typically seen as a growth and expansion strategy for an established firm. However, even start-up firms can find foreign markets more attractive than home markets. No matter the rationale for exporting, the approach is to enter the market cost efficiently and reach a break-even point as soon as possible.
An export-ready business has considered the following: (1) company/product/service strengths, (2) rationale and objectives for exporting, 3() growth potential in other markets for products and services, (4) context of foreign country and the industry in the foreign country, (5) legal and regulatory requirements, (6) target market in foreign country, (7) financial requirements and (8) market entry issues. We zoom in on market entry strategies in our discussion, “Preparing for Exporting – Getting to the Customer,” on AfribizTalk on October 21, 2009.
We were joined by two experts – Dr. Patrick Wilson and Dr. Emeka Nwankwo. Dr. Patrick Wilson, Administrator of Big-Africa Partnerships Secretariat (BAPS), shared how the technical issue of labeling impacts the marketing of an African good exported to the United States. Dr. Emeka Nwankwo, CEO of Vertical Optimization LLC, shared the process they use in Export-Path , which illustrates both the issues exporters should address and an approach for success.
Dr. Pat indicated labeling should be informative, truth and not misleading. Also, anything you put on labeling you must be able to prove. Therefore, you should follow the mantra, “Do what you say and document what you do.”
Dr. Pat stressed the importance of having a good relationship with the distributor and buyer of your product in the foreign market. Since in many cases you will not be local, the distributor and buyer will handle the presentation and placement of your product to your potential customers. You want to work with those who will place your business opportunity as a priority.
Dr. Pat’s point leads into the larger discussion of export readiness. There is a distinct difference between being export “willing” and export “ready.” You may want to export, but have you developed the strategies and capacity to do so?
Dr. Nwankwo said there are three key challenges faced by exporters. First, exporters need to access appropriate information to help shape their decision about exporting. We agreed that this is a key gap in how many businesses approach exporting. Two, exporters need to have appropriate resources, e.g., human capital, equipment, and financial capacity. Three, exporters need access to the marketplace, meaning the physical process of getting the products or services to the customer. This includes elements like customs clearance, transport, warehousing, distribution and marketing.
We finally zoomed in on the challenge of access to information. This is a challenge consistently mentioned by experts and clients alike. Dr. Nwankwo says information, or the lack thereof, impacts a decision to pursue or not pursue exporting. The first consideration is the exporting business concept. This “straw-man” serves as input to the information gathering process. It could be an existing business plan along with basic information about the idea for exporting, e.g., rationale and objectives, potential export country, target audience, timing, issues.
According to Dr. Nwankwo, the Export-Path process walks potential exporters through four key steps. These steps include considering the concept, gathering intelligence on the opportunity, developing the product prototype and completing a risk analysis. After gathering the intelligence, potential exporters will be able to decide to pursue exporting or not. After completing the risk analysis, an export plan is generated. The export plan is key to acquiring finance, if needed, for developing production capacity.
Since appropriate information is critical, we recommend that you first seek out and review existing information that is readily available and free. Our Afribiz Info Portal will help you do just that. In addition, we provide an on-demand seminar outlines a path for plunging into business in Africa. It can also be applied to other ventures into international business. The seminar, “Setting a Path for Success in Africa: in Business, Investment and Life,” is also available at the Afribiz website.
Listen or download the recorded radio show here.
Check out other AfribizTalk shows here.
Tags: AfriBiz, Africa, African, business, concept, expert, in, markets, on, partners, partnerships, radio, seminar, services, strategy, the, venture Posted in Business in Africa | No Comments »
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Friday, October 16th, 2009
We had a great discussion this week about “Entrepreneurship: The Answer to Economic Uncertainty.” The picture for our economy doesn’t look good, even though the Dow Jones surpassed 10,000 on Wednesday. Much of the improved financial status of publicly-traded firms comes from cost-cutting not sales. Economists still do not expect the unemployment picture to get better any time soon.
But our discussion didn’t focus on the downside, but on the upside! We shared how entrepreneurs are the key to the economy and economic recovery. Bo Fishback, Vice President of Entrepreneurship at the Kauffman Foundation, shared how almost all the new job growth in the U.S. comes from companies under five years. That’s right it is people like you and me – aspiring, emerging, new and serial entrepreneurs – that create jobs, not the government!
Some other highlights from the radio broadcast are 1) An entrepreneur is more than someone organizing a business venture and assuming the risk. An entrepreneur is a creator, innovator and problem-solver. 2) Entrepreneurs can gain influence, strength and support by coming together in community. For example, need capital. Learn about the concept of peer-to-peer loans by watching a Forbes magazine video. Also, check out www.prosper.com. Here you have people and entrepreneurs helping each other. Learn how entrepreneurs as a part of communities fostered economic development throughout history in “The Entrepreneurial Secret” by Cedric Muhammad. 3) If we become a community, we can also become an economic system in our own right, fostering economic growth in our locally and globally.
But to be in the know, you need to listen to the show! Listen online or download to your computer, MP3 player, cell phone or I-POD.
And, I just have to add one other point to top off reasons to get moving on that entrepreneurial idea. Over 50% of the companies listed on the Fortune 500 started in times of recession. So, this is the time for us to get in gear and make it happen for ourselves, families and communities! Kauffman launched a great platform to facilitate a unified voice for entrepreneurs called the Entrepreneurs’ Movement. Join and get others to join!
There are other ways to stay connected with Kauffman’s work with entrepreneurs. Check these out:
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!
Tags: business, concept, development, economic, economic development, economy, entrepreneurship, ICT, in, new, on, radio, system, the, trade, venture, video Posted in The Art of Making Business Happen | No Comments »
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Monday, October 12th, 2009
Most people seem to be worried by the global economic crisis. The forecast for job growth is slow. But in actuality, this is a paradigm shift. Creating an opportunity for massive number of entrepreneurs to arise. You and I, as entrepreneurs, are the innovators and problem solvers which will make the difference. Everyone has the potential to be an entrepreneur. Its up to you to decide whether or not you will take the journey.
This seminar is a 1.5-hour overview for our workshop series by the same name. The focus of the series is to get you from the “idea” of doing business to “implement” a business idea. The topics covered in this seminar are:
- Unique Competitive Space
- Business Opportunity Identification and Prioritization
- Positive Cash-Flow Business Model and Implementation
The full series involves an additional four workshops, which walk you through the entire process of taking a business idea to implementation. At the end, you will have a plan to start your new business or new plan for an existing business immediately! When you are ready for the additional workshops, just contact me at info@conceptualee.com.
The seminar is available for online and mobile platforms as video or audio below. You will also find links for the seminar slides and additional resources below.
Hold on for the ride!
Seminar Video (MP4)
Seminar Audio (MP3)
Seminar Slides (PDF)
P.S. You can post comments and questions about the seminar if you register on the site.
Tags: business, concept, Conceptualee, economic, in, mass, new, on, seminar, the, video, workshop Posted in Seminars and Workshops, The Art of Making Business Happen | No Comments »
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Thursday, September 24th, 2009
As Christians, we often get stuck with God-inspired business ideas that we cannot bring to birth. Like Hezekiah said, “for the children are come to the birth, and there is not strength to bring forth.” (Isaiah 37:3) But God is in this. He sets the order. He reminds us that “Shall I bring to the birth, and not cause to bring forth? saith the LORD: shall I cause to bring forth, and shut the womb? saith thy God.” (Isaiah 66:9) What we often do not understand is there is a process or pattern God has designed for us to follow. This process always involves moving from the invisible to visible, from the impossible to possible, from heaven (spirit) to earth (physical). These business ideas die on the vine because we do not have enough revelation.
While we can never put God in a box, there are some supernatural and natural strengths in which we can operate to see our business ideas come to birth. God used my experience in developing business ventures in Africa to teach me this. The path often started with nothing but transformed into something significant.
This seminar reveals more of the creative, competitive process to see your business idea come to birth, multiply and produce profit. It is a part of the Art of Making Business Happen – God’s Way brand. Come be a part of what God is doing to create economic prosperity for His people regardless of the circumstances in the world.
This seminar is a 1.5-hour overview for our workshop series by the same name. The focus of the series is to get you from the “idea” of doing business to “implement” a business idea. The topics covered in this seminar are:
- Unique Competitive Space
- Business Opportunity Identification and Prioritization
- Positive Cash-Flow Business Model and Implementation
The full series involves an additional four workshops, which walk you through the entire process of taking a business idea to implementation. At the end, you will have a plan to start your new business or new plan for an existing business immediately! If you want to understand the spiritual secrets behind these workshops, you can sign up for KingdomBiz study circles. When you are ready to move forward, just contact me at info@conceptualee.com.
Download this seminar for free. It is available for online and mobile platforms as video or audio below. You will also find links for the seminar slides and additional resources below.
Hold on for the ride!
Seminar Video (MP4)
Seminar Audio (MP3)
Seminar Slides (PDF)
P.S. You can post comments and questions about the seminar if you register on the site.
Tags: Africa, business, concept, Conceptualee, economic, in, network, on, seminar, the, venture Posted in Business Topics, Seminars and Workshops, Strategy and Vision, The Art of Making Business Happen | No Comments »
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Monday, June 22nd, 2009
This 20-minute BizBrief covers the components of and process for developing a business model. The business model answers the question, “How do we logically create value,e g., products and services, for our customers?” It demonstrates how you will execute your competitive strategy. The business model serves as the core input for a business case, business concept document or a business plan.
The topic objectives are:
- Describe the role of the business model in an enterprise’s strategy and operation.
- Identify customer element of the business model.
- Identify process element of the business model.
- Identify network and channel element of the business model.
- Identify financial element of the business model.
- Identify steps to develop business model.
The seminar is available for online and mobile platforms as a video or audio below. You will also find links for the seminar slides and additional resources below.
Seminar Video (MP4)
Seminar Audio (MP3)
Seminar Slides (PDF)
How to Describe and Improve Your Business Model to Compete Better (Draft Document)
Business Model Generation Book
Tags: business, concept, in, innovation, network, on, services, strategy, the, tools, video Posted in Business Topics, Strategy and Vision, Tools and Tips, Training and Teaching Materials | No Comments »
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Tuesday, June 2nd, 2009
Originally posted at www.afribiz.info.
Economic zones are geographic areas designated to promote trade and economic development with in a country. They have more liberalized economic policies than the countries in which they reside. Typical advantages for businesses and investors include tax incentives, better infrastructure, institutions and processes for business, and freer flow of imports or exports. Like economic hubs and regional economic communities, economic zones present an excellent strategic advantage for those interested in doing business in Africa.
There are different forms of economic zones, from free ports to information processing zones. Currently, Africa has approximately 90 economic zones according to the International Labor Organization (ILO). To learn about the global trends and issues associated with economic zones, check out a presentation from the Foreign Investment Advisory Service conference called “Economic Zones: Learning from Global Experience.
Many of the African economic zones started as export processing zones (EPZ). However, several African nations have noticed declines in their viability and benefit alone, particularly with increased competition. They are looking to diversify development of economic zones to emulate the success of places like Dubai. Kenya has recently announced they will be transforming their export processing zones to economic zones. The Kenya Investment Authority and the Kenyan Export Processing Zones Authority can provide more information about their economic zones.
Another model for concentrating and leveraging economic activity is clusters. Clusters are a group of enterprises in close geographic proximity that produce similar or related products in a particular field, e.g., nanotechnology, leather, diamonds. Michael Porter popularized the concept of competitive clusters, but globally nations are seeing clusters as part of the future of economic policy.
Last year, a continental forum, Pan-African Competition Forum (PACF), was established to promote the development of clusters on the African continent. The PACF evolved from the initial success of the Innovation Systems and Cluster Programme – East Africa. East Africa is setting the pace for competitive clusters. Check out some of the clusters organized in the last several years here.
To explore the opportunities available with economic zones and clusters, the first step is to speak with the national investment promotion agency for any African country. They serve as excellent launch pads for understanding the business path in a country. For the website locations of African promotion agencies, check here.
To enhance your understanding of economic zones and clusters in Africa, we also are providing “BizBits” throughout this month. These are snippets throughout each day focused on economic zones and clusters. To follow or join the BizBits feed, click here.
Tags: AfriBiz, Africa, African, business, concept, development, economic, economic development, enterprises, in, innovation, on, strategic, system, technology, the, trade Posted in Business in Africa | No Comments »
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