Why growth stalls despite investing in latest technology

Technology is an accelerator and not a creator of momentum. Graphic/FILE  NATION MEDIA GROUP

By CANUTE WASWA

In Summary

• Would you ever imagine that a bank would give up to 30,000 loans a day? Well, that is exactly what is happening at CBA bank
• Most young companies believe that it is possible to jump up the ladder of execution by relying on technology to pull them up
• It is dangerous to jump into technology fads without understanding the true value of the technology. And this is true in every aspect of technology

Would you ever imagine that a bank would give up to 30,000 loans a day? Well, that is exactly what is happening at CBA bank.

This has been made possible by a simple but revolutionary concept, M-Shwari. The sharp increase in M-Shwari account holders has made CBA Kenya’s second largest retail lender after Equity Bank. In fact, its uptake has seen CBA’s deposit accounts as at September surpass five million up from 34,884 in 2011, to leave it second only to Equity Bank which hosts over seven million accounts.

So we will have a technology conversation today. Most young companies believe that it is possible to jump up the ladder of execution by relying on technology to pull them up. Heavy investments are made in making sure that the company is using all the latest popular tools.

Unfortunately, unfocused application of technology only leads to waste of time and money.

Hedgehogs and Foxes

To understand the place of technology in a company, Jim Collins, the management guru divides organisations into hedgehogs and foxes, based upon an ancient Greek parable.

The fox is a cunning creature, able to devise a myriad of complex strategies for sneak attacks upon the hedgehog. Day in and day out, the fox circles around the hedgehog’s den, waiting for the perfect moment to pounce.

Fast, sleek, beautiful, fleet of foot, and crafty—the fox looks like the sure winner. The hedgehog, on the other hand, is a dowdier creature, looking like a genetic mix-up between a porcupine and a small armadillo. He waddles along, going about his simple day, searching for lunch and taking care of his home.

The fox waits in cunning silence at the juncture in the trail. The hedgehog, minding his own business, wanders right into the path of the fox. “Aha, I’ve got you now!” thinks the fox. He leaps out,

bounding across the ground, lightning fast. The little hedgehog, sensing danger, looks up and thinks, “Here we go again. Will he ever learn?”

Rolling up into a perfect little ball, the hedgehog becomes a sphere of sharp spikes, pointing outward in all directions.

The fox, bounding toward his prey, sees the hedgehog defence and calls off the attack. Retreating back to the forest, the fox begins to calculate a new line of attack.

Each day, some version of this battle between the hedgehog and the fox takes place, and despite the greater cunning of the fox, the hedgehog always wins.

As Mr Collins puts it, “The fox knows many things, but the hedgehog knows one big thing.”

It is dangerous to jump into technology fads without understanding the true value of the technology.

And this is true in every aspect of technology. CBA chief executive Jeremy Ngunze makes a great point that technology is an accelerator and not a creator of momentum. You cannot count on technology to do your work for you. You are going to need to think and build the hedgehog concept on your own.

Technology should not be the master of your policies but rather a tool to help you get where you need to go.

It is still the business decisions that make the biggest impact on the company.

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