Lauri Elliott

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 (296) presentation.  You can also listen to a recent radio show, “Power Push:  Using Social Capital for Success.”

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.

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.

I love how the self-publishing industry has evolved over the last ten years, so that people can take more control over their dreams to be authors.  I just spent time helping my mom publish her first book, all for under $10.00.  The process was straightforward and streamlined.  I think it’s a great channel for many who have been waiting to write and publish a book – even those who have already published.

I am not an expert on publishing, but I am good at research and exploration.  After all the time my mom spent writing over the years but never getting to the publishing step, I pushed her to pull together a book on something.  She did an excellent job.  She came up with her first title, “King Commemorations:  A Collection of Activities,” which will be available in a few weeks.

There are several self-publishing houses like CreateSpace.com and Lulu.com, which allow you to publish for no cost. Books are ordered on demand, so you do not have to put much money upfront.  As your book sells, the book is printed.  The buyer pays for the printing, so you do not have to pull money out of your own pocket upfront.

In addition to printing, the services ship, or distribute, the books as they are ordered. The shipping time is reasonable.  CreateSpace.com, which is an affiliate of Amazon, says shipping normally occurs within five days.

They even assign an ISBN number to your book.  And best of all, you keep all rights to your work.   On the downside, the services do not market for you much and they get a royalty on each book sold.  However, the services like Lulu.com have packages you can purchase, which provide more support for editing, marketing, pricing, retail store distribution, etc.  And in general, the more you invest upfront the less royalty the services claim.

If you are like me, I don’t mind doing the work myself.  Plus, in my case, I have a background in technical writing, so I am very use to writing, editing, layout, proofing and printing.

So, how did we do it?  Let me share the steps. 

Step 1: Write and Edit

• My mother wrote, or pulled together, her “book.”
• She and I edited the document several times for grammar and writing style.
• We worked on the layout.  Then, we edited the document again.
• When you have looked over a document several times, you can begin to make errors.  So, my mom had several of her friends, who write well and pay attention to detail, proof the book.

Step 2:  Prepare for Publishing

• We decided to try CreateSpace.com to publish the first book.  We set up her account and the detailed profile for the book.
• For submission, we had to develop a cover for the book, using a template provided by CreateSpace.com.  We also had to submit the cover and content as pdf files that were print ready.  CreateSpace.com provided detailed submission guidelines.
• Once we checked everything against the submission guidelines, we uploaded the files so CreateSpace.com could review and prepare a proof of the book.
• We were notified within one business day about a few, minor errors, so we corrected and re-submitted.  We were happy that we had successfully submitted in alignment with the guidelines.
• The only money spent was to order the proof.  That was just $9.00, including shipping.  The proof was shipped in one day and arrived within three days. I love their efficiency!!
• The proof was good quality.  It brought a lot of excitement, having your writings finally in print!
• We found a few errors in the printed proof, so we made changes and re-submitted.  Each time you re-submit the book you are required to order another printed book proof.  So, this is where you might spend more money, depending on how often you have to re-submit the book with changes.

Step 3:  Publish

• Once we were satisfied with the proof, we approved the proof online.
• The book is now in queue to be published, which takes a few weeks.  People can purchase from Amazon.com or the online store that CreateSpace.com provided.

Just a few additional points.  This process is totally online except for reviewing the book proof, so the more comfortable and efficient you are with the online environment the easier the process will be for you.  But, it’s still a great opportunity for learning because you have a strong incentive to succeed.

Some of the basic tools you will need are a computer, internet, word processor, graphics program, and pdf creator.  Highly useful skills include writing, editing, drawing and/or taking pictures, and graphic design.  But you can always find people to help you with any aspect of the process.

If you have been waiting to write that book, you now have even more control over getting it published.

I’ll let you know how we do on the marketing.

Originally posted at www.afribiz.info.

Free Collection of Information and Intelligence on Doing Business in Africa

In this edition, you will find:

• Tapping into the Under-Tapped Consumer Markets in Africa
• AfriBiz™ Resource Collection

Tapping into the Under-Tapped Consumer Markets in Africa

When people speak of Africa in terms of business opportunities, the conversation often focuses on resources, infrastructure and energy.  However, there is another vast market/business segment that continues to be pushed to the side – the people of Africa.  An expert on consumers in developing/emerging economies, Dr. Vijay Mahajan, shares insights into one of the best “low-hanging fruit” business opportunities even during this time of global economic crisis.  In “Africa Rising:  How the 900 Million African Consumers Offer More Than You Think,” Dr. Mahajan outlines the potential business opportunities in serving the consumer markets of Africa.

We can even look ourselves at the success of the cell phone industry on a continent that still is not well connected via landlines.  You find cell phone infrastructure widely in Africa and being used regularly, even by people who supposedly cannot afford them.

You can learn more about this business opportunity paradigm by:

1. Viewing a three-minute video of Dr. Mahajan, highlighting the potential of the African consumer markets here.
2. Requesting a free, 4-page summary of the book, “Africa Rising,” from AfriBiz at info@afribiz.info.
3. Purchasing the book, “Africa Rising,” from Amazon.com.

AfriBiz™ Resource Collection – January 2009

AfriBiz™ Resource Collection is a free and frequent compilation of socio-political, economic and development resources and information, which contributes to more intelligent business and investment in Africa.  These resources are freely accessed and downloaded from web sites on the Internet.  We compiled them into this collection to make it easier for you to navigate your research on doing business in Africa.

Africa Economic Outlook 2008 Country Notes – Organisation for Economic Co-operation and Development

Country Risks Synthesizing Chart December 2008 – ONDD

Doing Business 2008: South African Development Community – World Bank

Doing Business 2008: Common Market for Eastern and Southern Africa – World Bank

Doing Business 2008: Economic Community of West African States

Doing Business 2008: Economic Community of Central African States – World Bank

Doing Business 2008: Middle East and North Africa – World Bank

Economic Development on Africa 2008 – United Nations Conference on Trade and Development

Economic Report on Africa 2008 – United Nations Economic Commission on Africa

Global Competitiveness Report 2008-2009 – World Economic Forum

Global Economic Prospects 2009 – World Bank

Global Financial Stability Report – International Monetary Fund

Global Risks 2008 – World Economic Forum

Index of Economic Freedom – The Heritage Foundation

International Trade Statistics – World Trade Organization

Political and Economic Risk Map 2008 – Aon

World Economic Outlook 2008 – International Monetary Fund

World Economic and Social Survey 2008 – United Nations

World Trade Report 2008 – World Trade Organization

World Investment Directory X:  Africa – United Nations Conference on Trade and Development

Free Collection of Information and Intelligence on Doing Business in Africa

In this edition, you will find:

• Tapping into the Under-Tapped Consumer Markets in Africa
• AfriBiz™ Resource Collection

Tapping into the Under-Tapped Consumer Markets in Africa

When people speak of Africa in terms of business opportunities, the conversation often focuses on resources, infrastructure and energy.  However, there is another vast market/business segment that continues to be pushed to the side – the people of Africa.  An expert on consumers in developing/emerging economies, Dr. Vijay Mahajan, shares insights into one of the best “low-hanging fruit” business opportunities even during this time of global economic crisis.  In “Africa Rising:  How the 900 Million African Consumers Offer More Than You Think,” Dr. Mahajan outlines the potential business opportunities in serving the consumer markets of Africa.

We can even look ourselves at the success of the cell phone industry on a continent that still is not well connected via landlines.  You find cell phone infrastructure widely in Africa and being used regularly, even by people who supposedly cannot afford them.

You can learn more about this business opportunity paradigm by:

1. Viewing a three-minute video of Dr. Mahajan, highlighting the potential of the African consumer markets here.
2. Requesting a free, 4-page summary of the book, “Africa Rising,” from AfriBiz at info@afribiz.info.
3. Purchasing the book, “Africa Rising,” from Amazon.com.

AfriBiz™ Resource Collection – January 2009

AfriBiz™ Resource Collection is a free and frequent compilation of socio-political, economic and development resources and information, which contributes to more intelligent business and investment in Africa.  These resources are freely accessed and downloaded from web sites on the Internet.  We compiled them into this collection to make it easier for you to navigate your research on doing business in Africa.

Africa Economic Outlook 2008 Country Notes – Organisation for Economic Co-operation and Development

Country Risks Synthesizing Chart December 2008 – ONDD

Doing Business 2008: South African Development Community – World Bank

Doing Business 2008: Common Market for Eastern and Southern Africa – World Bank

Doing Business 2008: Economic Community of West African States

Doing Business 2008: Economic Community of Central African States – World Bank

Doing Business 2008: Middle East and North Africa – World Bank

Economic Development on Africa 2008 – United Nations Conference on Trade and Development

Economic Report on Africa 2008 – United Nations Economic Commission on Africa

Global Competitiveness Report 2008-2009 – World Economic Forum

Global Economic Prospects 2009 – World Bank

Global Financial Stability Report – International Monetary Fund

Global Risks 2008 – World Economic Forum

Index of Economic Freedom – The Heritage Foundation

International Trade Statistics – World Trade Organization

Political and Economic Risk Map 2008 – Aon

World Economic Outlook 2008 – International Monetary Fund

World Economic and Social Survey 2008 – United Nations

World Trade Report 2008 – World Trade Organization

World Investment Directory X:  Africa – United Nations Conference on Trade and Development