Tech gurus to gain from CEOs’ plans

Strathmore techies who won a coveted continental prize for their M-Calc innovation. If you are a technology guru, you might just get more attention from your CEO this year than before. PHOTO/FILE 

In Summary

• One of the technologies held highly by CEOs is mobile communication. The immense penetration of mobile gadgets in Africa promises to further ease business processes through the creation of more innovative applications and faster communication regardless of distance.
• Though penetration of mobile devices is lower than often reported and connectivity challenges remain particularly high in rural areas, many African CEOs still have confidence that mobile technology is a game changer for the current business manager.
• However, majority of the CEOs interviewed were wary about data privacy, as much as they were interested in outsourcing services like cloud computing, from independent experts.

By Lilian Ochieng'
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If you are a technology guru, you might just get more attention from your CEO this year than before.

The results of a survey conducted by PricewaterhouseCoopers (PwC) suggests that a majority of organisation leaders in Africa plan to invest a lot more in advanced technologies, which they now see as the key vehicle for business growth.

The report states that about 87 per cent of these business leaders are working on increasing their investments in, for instance, cloud computing and advanced mobile technology this year.

The survey was conducted towards the end of last year. The CEOs interviewed listed mobile applications, use of open data and cloud software, as their main agenda in upcoming boardroom discussions.

OPTIMISTIC CEOs

“Ghanaian and Kenyan CEOs are 94 and 83 per cent optimistic respectively, that technology will help them achieve more revenue growth this year,” declares the report.

One of the technologies held highly by CEOs is mobile communication. The immense penetration of mobile gadgets in Africa promises to further ease business processes through the creation of more innovative applications and faster communication regardless of distance.

The Financial Times reported that in a seven-year period, mobile phone subscriptions had risen to 475 million from 90 million in sub-Saharan Africa. This has therefore changed the nature of communication and state of banking, commerce and investment in the continent.

Though penetration of mobile devices is lower than often reported and connectivity challenges remain particularly high in rural areas, many African CEOs still have confidence that mobile technology is a game changer for the current business manager.

The PwC report further says that new innovations, such as mobile banking, have given Africa a strong agility to change. It has exposed organisations to opportunities to thrive in business.

CEOs in the region have ambitious goals for this year, with 86 per cent of them planning to increase the amount they spend on staff training on technology.

“Mobile tablets and mini computers are a must-have for employees who are always on field and need to report back to their immediate supervisors urgently,” states the advisory leader for PwC Central and Southern Africa, Mr Jacques Louw, in the report.

The study states in detail that two-thirds of the CEOs have prioritised data analytics to help them predict trends, and technology to support standardisation and automation of office productivity.

They are keen on technologies that can enable them to cut stages that would otherwise make certain processes longer and time consuming. They are also interested in those that allow them to outsource certain functions. One such technology that was repeatedly mentioned by CEOs was cloud computing.

PwC says that 32 per cent of CEOs have plans to outsource such business processes to other organisations this year, with the view that the move will raise their standards in service delivery and up their revenue.

“Organisations that can deliver reliable, scalable outsourced services will be well placed to respond to increasing demand for both technology and business process outsourcing as a service in Africa,” states the report.

The survey shows that CEOs find outsourcing as the most attractive to companies for immense growth. They believe that hosting software and infrastructure outside the organisation improves productivity and reduces capital expenses.

SECURITY CONCERNS

However, majority of the CEOs interviewed were wary about data privacy, as much as they were interested in outsourcing services like cloud computing, from independent experts.

“CEOs want to be mobile and connected to their organisations without fearing about data security. They want the same for their sales forces, to build customer relationships using applications from any device anywhere they go,” says Microsoft Nigeria’s managing director Emmanuel Onyeje, in the PwC report.

According to PwC regional director Mr Steve Okello, most CEOs are focused on reaching new clients and securing relationships, and they see technology as the key link to these aspirations. They are also concerned about the effects new market entrants may have on their businesses.

The PwC report, titled “Africa Business Agenda” and covering 22 countries in the continent, was released this month.