Transforming businesses with online technology

With the FIFA World Cup transforming South Africa’s infrastructure with high-speed rail systems, better roads and state-of-the-art power systems, now is the time for African businesses to also take economical advantage of the other benefit of the tournament - online technology.

South Africa’s, not to mention the rest of the continent’s, internet systems saw major investment during the build up to the World Cup with the likes of Google even launching their ‘Street View’ technology in June, making South Africa the first African country to have this technology.

Street View allows users to virtually explore and navigate a neighbourhood through panoramic street-level images. It is also available in Google Earth and on Google Maps for Mobile. Of course, for businesses it creates a wonderful opportunity to market themselves with people visiting the country for the World Cup able to view the area in which they are staying as well as local restaurants and companies.

While the World Cup may be over, the technology remains and it is set to drastically transform businesses all over the country, especially the tourism sector.

Other countries in Africa have also started to take advantage of their new online infrastructure with web-cams being sent up in Namibia at the country's world famous Etosha national park. With such technology being harnessed, businesses are now able to market themselves on a much smaller budget. For hotels and other areas of the hospitality sector, not to mention any other business, they can now place themselves to be seen online allowing potential customers to view, representatives including Phumlani Mohoil, CIO of the FIFA World Cup 2010 Organising Committee, Hennie van Wyk, Group Head of Technology for ABSA Bank, George Munyua, General Manager for Equity Bank Limited and Morgen Mufowo of Econet Wireless are already announcing their plans to increase revenue while taking advantage of a pre set infrastructure.

Despite objections being raised about the technology around invasion of privacy, there are mechanisms for users to remove their information from these websites. In addition, for countries that depends on tourism for most of their foreign currency earnings, but do not have significant marketing budgets. Being able to view a hotel or national park online provides an equal opportunities marketing platform for small and large businesses alike.

The benefits of Africa being connected to the rest of the world will be one of the topics discussed at the CIO Africa Summit (hosted by GDS International). Today CIOs need better business insights. Now they have been provided with the Business Intelligence tools and processes to deliver reliable, current, and secure data and accessible information they wish to discuss real tangible strategies that will help develop more effective performance.

With the installation of a new undersea fibre optic cable and an infrastructure securely in place, now is the time for Africa to truly embrace business online in order to bring down costs while boosting employee efficiency and innovation.

Google vs. Yahoo

Why the search engine market needs a fuel-check

In the same week that Google reveals plans to launch a system that will allow publishers to charge for content, executive business channel MeetTheBoss.tv sits down with Yahoo’s Jeff Russakow, EVP of Customer Advocacy, to discuss consumer satisfaction and engagement - and how to monetize for the web.

According to reports revealed at the end of last week by Italian newspaper La Repubblica, Google will later this year launch an integrated payment system that allows publishers to use a single infrastructure for web, mobile and tablet to monetise their content.

The news comes hot on the heels of moves by News Corporation to buy the 61 percent of BSkyB that it doesn’t already own, bringing the pay-TV operator completely into the fold: this, too, is matched by News International’s (News Corp’s main UK subsidiary) to place its newspapers behind paywalls and begin charging online users to access their pages.

As such, the paywall debate is raging. The battle for online market share is raging too.

‘Reach is not enough’

For Yahoo, which currently reaches 600 million users worldwide, current plans to develop mobile apps to reach the 1.5 billion-strong handset market suggests there is still potential to reach a huge audience: but, even with Eastern Europe, the Middle East and Southeast Asia offering 500 million new users to the market place in the next five years, reach just isn’t enough.

“The first thing [to remember] is the good-old fashioned advertising model that says the internet is still in its early days and there’s a lot more money to come over,” explains Russakow in the exclusive interview with MeetTheBoss.tv. “Somewhere between 10, 11, 12 percent of total advertising is spent on online advertising and yet somewhere between 30 and 35 percent of consumer minutes are now spent online every night.”

The issue is that online advertising is basically now rivaling television; and has long passed and blown out print media or radio in terms of where the consumers are spending their time. It’s a little like Mad Men – only on acid.

“Outside of that,” proffers Russakow, “there is no question that the historical ideas of monetization online and the advertising monetization model as the only model have clearly been turned upside down.”

Eyeballs and engagement

Russakow points to Google as a reference, sighting how the search engine giant currently has about 180 minutes per user, per month; accounting for $25 per user, per year. “If you look at Facebook” adds Russakow, “they’re almost twice that.” In fact, Facebook currently sees 280 minutes per user per month, however, they’re only making $1 per customer per year. That’s a 25 times difference.

“Part of it, I’m sure, is that Facebook will close that gap by focusing on monetization,” suggest Russakow. “But the historical idea that eyeballs and engagement equals monetization is clearly not true anymore. You've got search; you've got display; you have listings; you have social and more and more, as people are moving to mobile devices, we’re seeing subscription models; people moving to content, apps, loyalty programs. As a result a lot of the monetization models that have existed in media for a long time are now starting to come to bear fruit online.”

Less is more

That’s all well and good. In short, Facebook could be a killer if only it could monetize successfully – only it doesn’t. But what for Yahoo specifically: has Google got the search market all sown up?

Russakow, perhaps obviously, says not. Yahoo economics are simply, he explains to MeetTheBosstv’s Jonathan Spragg; and Russakow is aiming to delver more, with less.

Already in the throes of an impressive cultural overhaul, Yahoo’s new CEO Carol Bartz has called Russakow a “transformational leader”. She says, “We need to do a better job of listening to Yahoo!’s users and advertisers and incorporating their feedback into our products and processes. In this critical role, Jeff will be instrumental in developing initiatives to improve customer satisfaction and loyalty, and he’ll ensure that we’re laser-focused on the needs of all our users and advertisers at every level of our company.”

Yahoo already has 600 million users - now with Microsoft as a partner, a colossal advertising budget and Russakow to boot: the market place could be shifting gear.

To see the interview in full, please go to MeetTheBoss.tv

Google’s new ‘PowerMeter’ sparks excitement at the NGU Europe Summit

It is not very often the words ‘Google’ and ‘energy-saving’ appear in the same sentence. However, in Portugal last week at the industry-leading Next Generation Utilities Summit, over 50 European Utility leaders were presented with the company’s new venture; Google’s ‘PowerMeter’.

Utilities, Power, and Energy have the potential to change the way the world operates in today’s environment. Saving money and reducing global energy usage is a familiar occurrence in the media, but there is not enough accessible information for the consumer on where to start. Posted paper bills are made up of complicated figures which give little information on energy consumption and how to save power. Google’s Jens Redmer, Director of Business Development for Europe discussed at the summit of a way to help the consumer in making the right decisions on their energy usage.

Google’s ‘PowerMeter’ provides customers with data on their personal electricity usage right on their own iGoogle homepage. It does this by receiving information from smart meters and energy management devices, calculating a customer’s energy consumption, and allowing each individual the ability to see what, in their homes, wastes the most energy.

Currently Google are testing the tool in the US, India & Canada, with the hopes of expanding later in the year. Not surprisingly, the NGU summit was the perfect place to introduce it to the European market. Redmer’s presentation sparked the interest of utility heads including João Torres, President of EDP Distribuição, Frank Borchardt, Head of Smart Metering at E.ON, Corne Meeuwis, CEO of CASC-CWE, Odd Håkon Holsæter, Chairmanof Nordpool and CEO of Statnett Norway, and Inge Pierre, Head of European Affairs at Svenskenergi. The innovative product was a mere catalyst for this esteemed group to discuss new ways to develop global energy supply with technology leaders from Siemens, Oracle, Alcatel – Lucent, SAP and Navita.

Many different companies will need to work together in order create a “path to smarter power”. Platforms like the NGU Summit need to become available to the industry’s figureheads for discussions and collaborations to occur more frequently. Already, Utility heads are booking their travel arrangements for the next NGU Summit in Europe, which is due to occur next February.

It is not very often that influential companies like Google take the time to develop innovative tools with the ability to aid in the reduction of energy waste. Having said this, it is clear technological applications like ‘PowerMeter’ are just the beginning and alone will not solve the energy saving issues that surround us.

But can Google’s’ initial contribution be the first step needed to move forward, before it’s too late?