ending the crisis of the future now victor okigbo november 2014 confidential draft document...
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Ending The Crisis Of The Future Now
Victor OkigboNovember 2014
CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
Building Local ICT Innovation
Ecosystems: The Prospects and
Challenges
IDEA NIGERIAFORMAL PRESENTATION TO REVIEW GROUP–Conceptual Brief
ONFIDENTIAL DRAFT DOCUMENT PREPARED AS WORK IN PROGRESS FOR DISCUSSION PURPOSES ONLY
About this Presentation
Dates and statistics are subject to refinement and change
Formats and appearance have not yet been finalized
Any screen captures or concepts shown are based on the current revision of the solution and subject to change.
DisclaimerThis presentation contains preliminary information that may be changed substantially prior to final release of the associated paper.
The information contained in this presentation represents the current personal view of Mr. Victor Okigbo on the issues discussed as of the date of the presentation.
Any data sources not quoted will be given their due attribution in the printed version of this on-screen presentation.
Context: ICT & Development
$80Per Barrel
Currently, oil prices have fallen far below their prediction to a low of $80.52pb (WTI), which is expected to affect external reserves accretion and the CBN‘s ability to support the currency.
The US, a former major importer of Nigeria‘s crude, has ceased importation from Nigeria due to the production of its own crude.
SOURCE The Economist Intelligence Unit (EIU) CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
A staggering 113rd
out of 144 now 148 countries as measured by the WEF/INSEAD Global IT Readiness Index
CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
Source: WEF INSEAD GITR Report 2013
Crisis In The Future Now
CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
Source: Commonwealth YDI Report 2013
The combination of youthful populations with low youth development indicators points to multiple crises in the making.
EducationBusiness environmentPoverty levels
Peace/security
Governance
CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
ResolutionStrong correlation between the five key factors and high levels of youth development. Improvements in each of these five factors can have a significant impact on youth development.
per capita income
Does not correlate strongly with YDI scores. Low income countries can make significant advances by providing young people with opportunities to seek quality education and training, and to participate in their country’s social, political and economic life. Hope and opportunity for 87% of the commonwealth.
Vision: Building Sustainable Software Businesses
Role models & Mentors
Shared Space & collaboration
Professional Assistance
Access to Capital
Monitoring & Evaluation
Support software development and creativity
We will utilize integrated best-of-breed approaches stimulate the establishment and
growth of technology-based startup companies and increase the number of successful
companies originating and developing in the area.
InvestmentNetworking
Feedback
Finance, legal, marketing and business
management
Business KPIs
Focus on KPI’s to track business performance and bring the missing business management skillset to the engineers and programmers who make up the core.
Market Access
Focus on helping members find the best route to market utilizing Go-To-Market Strategy, existing business networks, influence and experience.
Incubation + Acceleration
Focus on Business learning & Continuously expose member to targeted, targeted pitching opportunities with appropriate VC’s and partners
Focus Areas
Short-term: Next 6 months Long-term: 2013-2015
Risks Opportunities Risks Opportunities
Incubator demand
• Low awareness of incubator concept generally and IDEA specifically
• Inadequate local incubator management centres of excellence
• Novelty of incubator concept in local media (opportunity to generate top stories)
• Dev. community is over-represented in social media – easier to reach than traditional media
• Incubator successes/models around the world can be adapted to local circumstances
• Lack of depth of pipeline • Rising costs of basic infrastructure (premises, high speed internet, power) in Lagos Metropolis to drive traffic.
ICT market
• Weak demand for local solutions especially in enterprise
• Disruptive emerging technology – changing the application development landscape
• ICT solution competition from overseas
• Benchmarking against international standards
• Partnering with agile, forward leaning op
• ICT regulatory environment evolving to keep pace with technology changes
Socio-political environment
• Elections / Political stability• High software priacy
• Sustaining a robust and activist technology policy beyond current dispensation
• Unpredictable political environment. Uncertainty makes for poor planning
Macro-economic environment
• +ve conditions for Asian tech competitors
• Continued energy insecurity
Context Analysis: External Market Risks and Opportunities
10
Business KPI’s
Goal Setting for learning AND Business Devt.Focus on learning the right things
Testing against global standards
Availability of free ebooks, journals and groups
Online study programmes from MIT, etc
Key information is presented to the business owner in a
safe and learning conducive environment
Online study programs are curated and presented to
incubatees
Local and international expert
resources can concentrate efforts
on incubation centers
Interface with external parties and a broad network of advisers
and mentors
The Infrastructure Challenge OVERVIEW
INFRASTRUCTURE COSTS MUST REMAIN TIGHTLY CONTROLLEDThe overwhelming bulk of the opex of the incubation/acceleration centre is committed to keeping basic infrastructure functional.
It is incidental that his is immensely beneficial to the emerging companies which would otherwise struggle to meet the infrastructure costs that would otherwise stifle their businesses.
Salaries31%
Overheads23%
Internet Connectivity
27%
Rent (Lagos)17%
Events and Competitions3%
LAGOS SPEND BREAKDOWN
Salaries Overheads Internet Connectivity
Rent (Lagos) Events and Competitions
KPI Trend – Last Six MonthsPOSITIVE TRENDLINES – INNOVATION IN KPI TRACKINGIt is critical to determine meaningful metrics to judge and benchmark the performance of the startups with minimal income streams and even the performance of the incubation/acceleration effort.
Outside of deal size and number of exits (which are occasional datapoints), I advocate continuous monitoring and tracking of key variables. Increased followership on twitter (the primary social media platform preferred by our audience) as well as increased engagement (number of tweets and replies as well as the quality of followers reflect the influence and depth of engagement in the community. Tracking KLOUT scores may be a good project.
FEB MAR APR MAY JUN JUL -
200
400
600
800
1,000
1,200
1,400
Social Media (follow-ing)*
FEB MAR APR MAY JUN JUL -
20
40
60
80
100
120
Number of Members
FEB MAR APR MAY JUN JUL -
1,000
2,000
3,000
4,000
22 23 24 25 26 27 28 29
Diesel Used (Litres) and No. of Days Open
Diesel Used (litres)
Days Open
Market Access
Encouraging ICT Development through EntrepreneurshipCollaborations between the government and private sector can yield pragmatic development solutions offering cheap ICT services eg Techlaunchpad and IDEA-Nigeria
Meet the challenge of providing basic infrastructure
Critical dimensions for selection include leap-frog potential, span of
benefits, people-centricity and
innovation.
Example: IDEA-Nigeria is a highly focused on software development as part of it’s defining charter– other such hubs may focus on content, media or other
areas
The anticipated multiplied impact is that each successful business will generate 10 to 50 times the developmental
benefits of the initial investment
Encouraging ICT Development through EntrepreneurshipCollaborations between the government and private sector can yield pragmatic development solutions offering cheap ICT services eg DEMO Africa, NITDA, ICT Ministry and IDEA-Nigeria
Nigerian participation increased from a mere 4 startups in the previous edition to 15 startups in
the current edition
Example: DEMO AFRICA A Launchpad for tech startups and investors hosted
successfully in Nigeria for the first time with the invovelemt of NITDA and The
ICT Ministry
Up to 10 million USD is expected to be raised at DEMO Africa 2014 when the final reckoning is compeleted.
Incubation +Acceleration
Incubation ProgramINCUBATEE PRE-SELECTION MATRIX
RANK TEAM VENTUREFOUNDED SECTOR DEMOGRAPHICS MARKET SIZE (N)
1 PrepClass PrepClass 2013 EducationSecondary School and prospective university students (between the age of 10 - 21) N9 bn
2 Hutbay Hutbay 2013 Real Estate
Landlords, Landladies, Home buyers, sellers and renters, real estate professionals and mortgage institutions
$11bn contribution to the GDP; growing at 9.12% annualy, and a potential $350b mortgage sector.
3 Fitted Ideas Fitted Ideas 2011 Creatives 14-55 N750 mn
4 iQube Base* mediFIX 2014 Health all demograph groups N12 bn
5AimTech Nigeria
GigaLayer.com 2012 Web Hosting Nigeria / Africa N1 bn
6 VergeNgInspireSoft Ltd VergeNg
Inventory Management Small, Growing and Informal Businesses N100 bn
7Ideacentric Global Nerve
( Ideacentric-founded 31st Dec. 2010.) (Nerve - 2013)
Mobile Consumer Electronics - Digital content distribution
Our target customer is the mix of low-to-middle class individuals (Tier 1&3*) in the 15 to 35 age range. This customer in urbane, excitable& trendy. This customer group have a CPG (consumer packaged spend) limit of $90 and $250 respectively. This variation sits well with two debut Nerve smartphone models and can thus be covered via the same marketing efforts since both customer groups are equally aspirational and co-located in similar environments. (* see The Nielsen Research Report on “The Diverse People of Africa”) N192 bn (source Gfk, 2012)
*MediFIX has exited the program since selection
NOTE: We have selected a new cohort of incubatees (4 in total) – they will be signed on using the new terms (still under development). Two more candidates (VergeNG and IDEACENTRIC) are yet to be confirmed for the program.
Accelerator Group Beta MAR- JULY• 2nd GROUP. MAR-JULY
• March 16th – June 20th (13 weeks) DESIGN & BUILD STAGES
• June 22nd – July 6th (3 weeks break) BREAK FOR MID SEMESTER
• July 6th – July 27th (Final 3 weeks) FINALS: PITCH WEEK AND DEMO DAY
• August 3rd – September 15th GRADUATION / SELECTION BREAK BETWEEN GROUPS
Facilitators Professionals who have startup experience OR real-
world best-practice experience are selected for their appeal and ability to communicate effectively
Facilitators bring personal experience as well as their own take on the curriculum
• Alex Goma – Market Definition
• Adeola Tejumola – MR&I
• Steve Pore – Customer Development (Marketing, Loyalty & Brand Management)
• Steve Babaeko – Customer Development (Consumer Comms)
• Victor Okigbo – Team Build Out
• Bastian Grotte – Competitive Analysis
• Philip Salem/Tunde Kehinde* – GTM and Distribution
• Pius Okigbo – Pricing (software)
• Tani Fafunwa – Pricing (services)
• Femi Odewunmi* – Marketing (Positioning)
• Adefolu Majekodunmi* – Sales (Pipeline build)
• Folabi Esan* – Raising Finance 1
• Eghosa Omoigui* – Raising Finance 2
• Tomi Davies – Pitch Week Training
Key Lessons
KEY LESSONS
• IDEA to directly select ALL members and incubatee (no automatic selection from external programs)
• Provision of working capital is a key driver of sustainability but must be managed.
• Investment in startups is critical to successfully launch and sustainability
• Startups require go-to-market assistance as much as they require finance
• Timely provision of funding is essential at this early stage in the life of the incubation program. Delays can jeopardise the programs survival
Social Media: ImpactIndividuals• Create their own
content• Expose themselves to
online risks• Build and sustain
positive friendships• Have rapid access to
news and opinion• Exposed to
opportunities to exploit anonymity for fraud
Media• Traditional media losing
relevance with the younger demographic
• Convergence between media leading to hybrid media (eg advertising in online videogames)
IT Networks• Local networks and
infrastructure strained to the limit to deliver last-mile connectivity
• Rapid ramp up of broadband capability at the back-end
The homogenisation of youth culture results in reduced differentiation by culture and circumstance within the demographic – with the resultant consumption and generation of the same media using the same technology tools (watching Game of Thrones on tablets and tweeting about the season finale). Profound opportunities exist for innovative adaptations of globally tested formulations.
Transparent & granular monitoring & EvaluationIntegrated business monitoring and evaluation capabilities
Enables anomaly detection. Centrally managed analysis and policies based on aggregated information and hard research
All business progress is tracked and logged by
standarised assessment and monitoring tools
Correlation algorithms analyse venture and startup
data for patterns
Learning, Development, Networks and Media
+Response
How to Grow ICT Entrepreneurs
Defocus Technology – Focus on sustainable business
Fail, Kill and Break everything – Tough Love
Electricity & Broadband = half the battle
Local investment = half the battleSilicon valley will not invest in us if they don’t see us doing it for ourselvesIt’s amazing how basic the needs of some entrepreneurs are
TechLaunchpad + IDEA Nigeria and other initiativesTwo initiatives that respond well to the challenges of ICT development and youth empowerment
Initiated by the Nigeria’s current ICT minister.
A partnership of public and private sector interests.
Supported by technology majors academia, and private capital.
Engaging 6 out of 7 Youth Empowerment stakeholders
In Just over one year
100startups 12incubatees
with good to excellent prospects.
16weeks of intensive readiness training, pitch
preparation + monitoring and evaluation to go… 1 multimillion dollar exit
CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY
Youth entrepreneurship benefits Opportunities for self-employed youth as
well as the other young people they employ;
Bringing alienated and marginalized youth back into the economic mainstream and giving them a sense of meaning and belonging;
Addressing some of the socio-psychological problems and delinquency that arises from joblessness;
Helping youth develop new skills and experiences that can then be applied to other challenges in life;
Promoting innovation and resilience in youth;
Promoting the revitalization of the local community by providing valuable goods and services;
Capitalizing on the fact that young entrepreneurs may be particularly responsive to new economic opportunities and trends.
Youth Mainstreaming
• National youth development is often the sole responsibility of the government ministry or department where the youth portfolio lies, whereas youth issues should be mainstreamed across various sectors and line ministries such as health, finance, economic development, housing, justice, foreign affairs, education, and agriculture.
Context:
In Practice
Vision: Building Sustainable Software Businesses
Role models & Mentors
Shared Space & collaboration
Professional Assistance
Access to Capital
Monitoring & Evaluation
Support software development and creativity
We will utilize integrated best-of-breed approaches stimulate the establishment and
growth of technology-based startup companies and increase the number of successful
companies originating and developing in the area.
InvestmentNetworking
Feedback
Finance, legal, marketing and business
management
Business KPIs
Focus on KPI’s to track business performance and bring the missing business management skillset to the engineers and programmers who make up the core.
Market Access
Focus on helping members find the best route to market utilizing Go-To-Market Strategy, existing business networks, influence and experience.
Incubation + Acceleration
Focus on Business learning & Continuously expose member to targeted, targeted pitching opportunities with appropriate VC’s and partners
Focus Areas
The crisis of the future is… the opportunity of today
Thank You for [email protected]
Context:
In Practice
Resolution across various stakeholder groups
Source: Commonwealth Plan of Action for Youth Empowerment
Accomplishments Till Date & Programme Status
• The accomplishment till date and programme status is as follows
Incubation till CommercializationSelection ProcessProgram Planning
• Define Technology Innovation Programme
• Define Programme Scope• Define Topic/area of
boundaries • Identify and engage partners
Skill partners • Define eligibility criteria
Aspiring businesses Emerging businesses
(existing/old companies)• Define success criteria• Setup PMO and project
governance• Set-up decision making and
monitoring processes• Define and implement media
campaign strategy• Define Funding strategy
• Establish Selection Committee
• Implement Media/communication campaign and announcement of the bid process Radio Newspaper Media briefing by the
Minister Social Media
• Submission of bids by Interested candidates
• Review/shortlist bids by the selection committee
• Further screening including demo/face to face interviews to lead to identification of finalists
• Prepare incubation centers for selected individuals and Team
• Induct candidates into the incubation centers
• Assign mentors to successful candidates
• Mentoring of Finalists Fit for Purpose Solution by
CIOs Business management and
Entrepreneurship training by Fate Foundation, etc.
Technical/Standards training (including testing amongst others)* by Digital Jewel, Accenture, etc.
• Solution Standardization for Marketplace
• Presentation of solutions to stakeholders.
• Company setup
We are here
© 2013. Federal Ministry of Communication Technology
1 month4 months 6 months
Africania Computers
Industry: Oil and Gas
Name of Application: E-PUMP
Key Personnel: Ayodeji Ogundiran, Gabriel Ojomu, Adetiwa Olufemi
Brief description: Back-office real-time monitoring software for sales and operation of gas station. Provides real-time automation for
inventory mgt, centralized product price calculations, sales records, tank storage sales and volume dispense records, HR mgt., customer mgt., electronic data exchange with supplier for orders, delivery notes and schedules, and invoicing
Business Issue Software: Improves decision making process, brings about process efficiency
Is resolving and increase business profitability
Application Platform: .Net
Improvement Plan: Software currently built to collect data from the pumps. Plan is to build solution to do data automatic collection from fuel data from pumps
Completion Time Frame: 6 – 12 months
Income Source: Sale of software, training and annual License renewal
Total Automation
Category: Oil and Gas
Name of Application: Production Resource Planner (PRP)
Key Personnel: Paul Ugoji
Brief description: Real Time Production Resource Planner For The Nigerian Petroleum Industry. Provides avenue to capture main sources of data
generation on a typical oil producing facility: Well Test, Meter Proving, Daily Production Operation; Monthly Utilized Gas Calculation, Monthly Flared Gas Operation, Daily Well Status, Daily System Status etc
Business Issue Software: Provides platform for acquiring, storing, analyzing real time data to support
Is resolving and improve decision making process thereby increasing productivity and efficiency
Application Platform: VB, .Net & SQL server
Improvement Plan: Publicity via oil and gas exhibition, for a greater customer base
Completion Time Frame: 6 – 12 months
Income Source: Sale of software, annual License renewal, subscription fees
HexGEAR Technologies
Category: Oil and Gas
Name of Application: Oil & Gas Map
Key Personnel: Samuel Boham, Emeka Chika, Taiwo Adenusi
Brief description: Cloud based, Online, Real-Time, Collaborative, Interactive And Intuitive Oil & Gas Map of Nigeria. Explore Up To Date Info On Oil Block Concessions, Operators, Wells, Fields and Infrastructure All In One Location Via Your PC, Tablet Or Smartphone
Business Issue Software: Provides Oil & Gas companies, Investors and general public with
Is resolving information on Nigeria’s oil & gas information
Application Platform: VB.Net, SQL server
Improvement Plan: Publicity via oil and gas exhibition, for a greater customer base
Completion Time Frame: 6 – 12 months
Income Source: Subscription Fees
Klein Devort
Category: All Industry Sectors
Name of Application: Sociopilot (changing to an unnamed Payroll application)
Key Personnel: Shola Akinlade, Mayowa Okegbenle.
Brief description: A Social Media Automation tool created to help businesses manage their Social Media presence effortlessly and find
new customers. Provide platform for: Social media monitoring, Customer profiling and Lead generation
Business Issue Software: Allows for businesses to put their social media campaigns on autopilot (has Is resolving a built in algorithm (patents pending) that makes it easy to profile people and link them with a company's products
Application Platform: VB.Net, SQL server
Improvement Plan: Integration with whatsapp, BBM, Instagram.
Completion Time Frame: 6 – 12 months
Income Source: Subscriptions from brands
i-SEC
Category: Financial Services
Name of Application: i.Sec
Key Personnel: Kayode Disu, Adebola Segun, Peter Ekunkoya & Telema Synger
Brief description: An authentication service that enables you to authenticate transactions on your bank account before your account is debited using your mobile phone.
Business Issue Software: Unlike traditional SMS debit alerts and SMS OTPs for approving online
Is Resolving transactions, i.Sec offers strong token-less 2 factor authentication via an IVR call to the customer who simply listens to a voice prompt and approves with his/her Strong-pin on the mobile device
Application Platform: VB.Net, SQL server
Improvement Plan: PCI Complaince- Payment Application Data Security Standard,
Proof of Concept with two Nigerian financial institutions & NIBSS
Completion Time Frame: 6 – 12 months
Income Source: Licencing to the financial institution and (or) switch, Registration fee to the customer and Monthly or transaction fee to the customer
Pawaak Technologies
Category: Financial Services
Name of Application: Microfinance Payment Processor (MPP)
Key Personnel: Felix Onyema, Olawale Bakare & Prasad Harischandra
Brief description: Microfinance banked platform based application for microfinance account holders in Nigeria. It inter-operates with banks payment interface and intra- communicating with switch payment servers and/or aggregators. Assists account holders to make easy mobile transactions such as – payment for purchase of goods; funds transfer to and fro microfinance/commercial banks and point of sale service
Business Issue Software: Provides mobile platform for microfinance transactions
is Resolving
Application Platform: Java
Improvement Plan: scale up product to cater for larger audience, Advanced Security features
Completion Time Frame: 6 – 12 months
Income Source: Charge Fees per Transaction
Prowork Technology
Category: All
Name of Application: Prowork
Key Personnel: Francis Onwumere, Opeyemi Obembe & Ernest Ojeh
Brief description: A Mobile Enterprise Solution For Project Management and Collaboration. It is accessible via mobile phone, the web, and has a robust API to allow developers to extend its functionality. Large organizations can deploy the Enterprise version. It is also offered in a software as a service (SaaS)
platform.
Business Issue Software: Provides collaboration platform for effective Project Management across
is Resolving different improvised media (email, sms, spreadsheets, google docs, etc)
Application Platform: Multiple (Mobile, Web, API)
Improvement Plan: Extending business value via business intelligence features
Completion Time Frame: 6 – 12 months
Income Source: Software sale, Yearly licensing, Fees from providing SaaS
Tedata
Category: Financial Services
Name of Application: EstocksMgr
Key Personnel: Engr Lawrence Ajayi, Olatunde Ogunlade, & Olanrewaju Sanni
Brief description: An Electronic Capital Market And Investment Manager that assists Asset Managers, Portfolio Investors and Market Researchers in their decision making fostering profitability when deployed. EstocksMgr promote investor's interest in the capital market while providing full access to analytical data and charts.
Business Issue Software : Provides traders and investors will have good technical tool for analyzing is Resolving and managing their investment
Application Platform: Dot net, SQL server
Improvement Plan: Web Enabled, real time Life feed, inclusion of personal investment portfolio module
Completion Time Frame: 6 – 12months
Income Source: Sale of software, yearly licensing fee & subscription fees for online users