Digital FocusSep-Oct 2015 Merger with Telkom to give BCX capacity: CEO - Nedbank launches Market-Edge SA IP Traffic to grow six folds: CISCO
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Digital Focus www.digitalfocus.co.za Sep-Oct 2015 Merger with Telkom to give BCX capacity: CEO Isaac Mophatlane, CEO of Business Connexion Nedbank launches SA IP Traffic to grow Market-Edge six folds: CISCO Magazine for the ICT Thought Leader!
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» 20 Contents Telkom feeling the fibre war September-October 2015 Editorial 6 Editor’s Note Cover - CIO Profile 10 Merger with Telkom to give BCX capacity: CEO Broadcasting 14 Online radio to overtake traditional broadcast? » ICT Security 17 Cybercrime on the rise in South Africa 14 Broadband 20 Telkom feeling the fibre war Online radio to overtake traditional CIO Profile » 22 Technology for Better Settlement broadcast? Science and Technology Systems and Applications 42 National Science Week stimulates 26 Building an international self funding young people’s interest business 44 Women researchers honoured for 30 Top ten SAP implementations mistakes contributions to health, social issues to avoid and aeronautical engineering Mobility 46 Central University of Technology 50 takes lead in 3D printing for medical 34 Mobile Health Solutions enabling purposes MEC not efficient healthcare 48 Excellence thrives in previously deterred by disadvantaged schools Data Analytics 50 Celebrating NSW 2015 around the school ICT 36 Nedbank launches Market-Edge country theft 53 Companies urged to compete for Networking global markets in technology 38 SA IP Traffic to grow six folds: CISCO » E-Learning Cloud Computing 55 MEC not deterred by school ICT theft 40 Safe cloud computing starts with sound information security practices 17 Tech and Lifestyle 56 Let the games begin Cybercrime on the rise in South Africa 4 5
Editor’s Note Young entrepreneurs have taken full advantage of what the world of ICT and development can do for a growing business but companies in the public and pri- Managing editor Nkhume Kudzingana vate sector are also joining the digital bandwagon to ensure the Editor longevity of their businesses. Nkhume Kudzingana Suzan Raphela In this edition we look at online broadcasting in South Africa, which is sprouting with new appeal and vying from the tradi- Contributors tional approach to radio. We speak to the founder of Hashtag Eugene Morokolo Alice Mpholo Radio and co-founder of CliffCentral on the challenges and reg- ulations around this new pillar in broadcasting. Layout and Design Suzan Raphela The growth of internet users in South Africa is set to explode in the next 4 years. According to the Cisco Visual Networking Index Editing and proof reading 2015 Predicts that South Africa will have the highest IP traffic Pfamoni Media growth rate by 2019. The index (VNI) Forecast 2015 that by 2019, there will be 27 million South African Internet users, up from 15 Sales and marketing million in 2014. Palesa Tshabalala Kagiso Setsetse Nedbank announces a first-in-market data analytics tool, Ofentse Moroka Nedbank Market Edge, enabling merchants and other business- es to gain business intelligence and valuable insights into client Website design behaviour through big data. Lefa Biya We have seen more and more people move towards digital Publisher media and for years rumours have been doing the rounds on the Pfamoni Media imminent death of print media, with the fruition of social media. 249 Basden Avenue, Crystal Park One Block O, Lyttelton Manor, Centurion, Could traditional broadcast face the same state of plateau? 0157, Gauteng, South Africa Tel: (+27) 086 099 4156 In our Tech & Lifestyle Web: www.saitnews.co.za feature, we talk to gam- ing blogger SuperDave Subscriptions and advertising on his successful online subscriptions@pfamoni.co.za blog; The Idiot’s Guide to Gaming. He tells us about Letters to the editor upcoming gaming devices editor@digitalfocus.co.za and software in SA as well as the gadgets he swears Repro and printing by. Business Print – 318 Derdepoort Road, The illusion of online Silverton, Pretoria, 0184 gaming being child’s play is steadily falling away as Directors South Africa plants its flag Nkhume Kudzingana (Managing) in the industry with the Kagiso Setsetse (Operations) emergence of developers Ofentse Moroka (Business and manufactures. Development) Copyright All material published by Pfamoni Media (Pty) Ltd is copyright and belongs to Pfamoni Media (Pty) Ltd, unless otherwise indicated. No part of the material may be quoted, photocopied, reproduced or stored electronically without prior written permission. Neither the magazine, the publisher or the editor can be held legally liable in any way for damages of any kind Nkhume Kudzingana, whatsoever arising directly or indirectly from any facts Editor or information provided or omitted in these pages or from any other statements made or withheld by this publication. Opinions expressed are not necessarily shared by Pfamoni Media (Pty) Ltd. 6 7
Africa roundup KENYA Farmers in Kenya are changing the at the farms in their absence. agriculture landscape by utilising modern technologies and mobile The EZ-Farm project by technology platforms to manage and choose giant IBM is currently being used their crops more effectively. on a trial basis in Kenya where it africa will explore how sophisticated data Dubbed ‘telephone farmers’, analytics can help farmers stay in Four countries in Southern Africa have smallholders who live in the city touch and monitor what happens collectively agreed to a pilot project for lower are increasingly using their mobile at their out of town farms. The mobile charges when roaming. Namibia, devices to keep up with what goes on technology enables the farmer to which indicate whether they are Botswana, Zambia and Zimbabwe agreed to the place sensors around the premises getting too much, too little or just project that is expected to commence later this of his farm to monitor variables enough nutrition. The information year. including water tank levels, the is then streamed using a wireless amount of moisture in the soil and network to the IBM cloud and can The Communications Regulatory Authority the irrigation equipment. be accessed by the farmer through of Namibia (CRAN) said wholesale and retail an application on his mobile device tariffs would be reduced annually according to The project can also use installed anywhere, anytime. the glide path approved by ICT ministers from infrared cameras on the farm to Southern Africa. measure rate of photosynthesis, Source: www.allafrica.com The authority assured that mobile operators would not be forced to go into reduced tariffs agreements with operators in the countries that are not in the pilot project, however, states interested in taking part in the project were welcome to do so. Source: www.telecompaper.com RWANDA Mobile network, Tigo Rwanda has partnered with the Reach for Change organisation to launch the Change-makers hub in Muhima, Rwanda for young applicants and digital change makers. The hub is set to provide support and to applicants, who apply to enter for the change-makers competition, aimed at identifying and supporting social entrepreneurs with the digital tools and technology to improve their communities. The change-makers hub is also a great space for young minds in the digital sector to interact and meet each other. SOUTH AFRICA “We are reinforcing our strategic partnership in supporting digital change-makers. We are happy to be the driving force Internet company, Amazon recently expanded (EMEA) for Amazon Web Services, Steve Midgely. that provides solutions that impact lives and bridge the its presence in South Africa with new offices in digital divide,” said Elisabeth Mwangi, director at Tigo People. Johannesburg, which will serve Amazon Web Amazon provides cloud services to customers Services clients including MTN and Standard Bank. including start-ups, enterprises and government. The competition awards professional coaching and More than 200 engineers, network specialists and mentoring from Tigo to help develop innovation. It is aimed “We have been an active contributor to the South account managers are expected to be hired as a at encouraging social entrepreneurs who are working African technology community for over a decade and result of the expansion in both Cape Town and now towards improving communities by using digital tools and by expanding our presence here, we intend to further Johannesburg. technology. accelerate the growth of our cloud customers in Africa,” said Head of Europe Middle East and Africa Source: www.fin24.com Source: www.biztechafrica.com 8 9
Cover - CEO Profile Cover - CEO Profile Merger with Telkom to give BCX capacity: CEO The approved takeover of Business Connexion (BCX) by Telkom will give Business Connexion more capacity and market dominance. The deal has been approved by the Competition Tribunal, Takeover Regulations Plan and the Johannesburg Stock Exchange in spite of an objec- tion by Dimension Data. In 2007 Telkom tried unsuccessfully to buy Business Connexion. At that time, there were fewer players - Vodacom was still part of the Telkom group and Cell C was not operating. » “The Telkom /BCX deal will be very beneficial to Telkom as it will allow the operator to enhance its offer- ings through integrated and end- to-end solutions that leverage BCX’s IT capacity and further,” says Isaac Mophatlane, CEO of Business Connexion. 10 11
Cover - CEO Profile Cover - CEO Profile “ Though the deal is expected to Cyber nest which is their data IT and mobile operators over the what we do is to integrate those create a bigger and more com- centre arm. So we will essentially South Africa’s information and years as competition heats up systems and data uncovering petitive Telkom, Mophatlane, in run the data centers on behalf communication technology and profit margins drop. MTN where the real opportunities are. an interview with Digital Focus of Telkom. Management stays in industry has been competitive has acquired hosting compa- Previously we took it for grant- magazine, before the decision place as it is and key staff will with Dimension Data, Gijima, EOH ny Afrihost, Vodacom is buying It is a job done ed by looking at IT as a silo and was made, said the executive be retained as we have a five and BCX all vying for market dom- (pending finalization) Neotel and that has changed. With the likes makeup of the company will not year contract to remain within inance. However, over the years Telkom has acquired BCX. For very well and of Samsung, Cisco and ourselves, change. “Business Connexion will the Telkom group,” he told Digital international consulting compa- Mophatlane it is crucial that as I wish the, we see a lot of growth there. Big remain an independent subsidi- Focus. nies have also joined the race much as they are on top they data is all about the analytics of ary within the Telkom group; we with BCX cautioning that the big are not relaxing: “It’s important metros, complex, that and not just the raw data. It’s hospitals and will take over staff from Telkom The data explosion in the indus- try has seen companies try to take advantage and for BCX it is no different. “We see our data centres as having the ability to partner with technology part- ners like Google and Microsoft, so four can’t afford to rest on their laurels. “Competition among the big four IT companies in South Africa is fierce, but one cannot rule out other companies like Tata Consulting and HCL Technologies who are doing quite well. We see that as much as there is com- petition, we need to be aware of new entrants to the market. Look, there will be consolidation because IT has become a com- modity. We are also beginning to see mobile operators move into all relevant authorities can adopt that “ about the data profiling of cus- tomers. Now more than ever, big data is very important.” Over the past few years IT has seen the emergence of big data, cloud and analytics develop- essentially we see ourselves as them competing with the likes of our area so it’s a very crowded ments that the public sector a destination and a hub.” We T- Systems, another competitor space to be trading in and we are is still coy on. “We have been recently launched a part- within our space. The dominance grateful to still be trading.” He leading with cloud. “The reality nership with Microsoft is one part but the sad part is the adds that consolidation is taking about cloud is that it’s invisible. in that space. Our data lack of black emerging compa- place. Customers are looking at People don’t care where the data centres can handle nies to joining the competition,” saving costs and today IT is a is stored - all people need is the multiple vendors and he says. commodity so the industry has ability to be able to access it. We customers and on to follow suit. “Today’s custom- are seeing the likes of Microsoft the back of “It should also be noted that ers make decisions because they and Amazon leading with cloud the Telkom BCX has in the past continued understand IT and what it will and we will integrate and work acquisi- to expand its reach across the bring to their businesses.” closely with those technology tion it will African continent focussing on partners. Government, however, give us a niche service providers rather As competition continues to has been a bit more cautious in significant than commodity players. As an increase, South African compa- adopting cloud,” he notes. dominance and example, BCX acquired companies nies like BCX continue to look to more capacity. To including managed print services the rest of the continent to give The soon to be introduced build a data cen- companies like Panabiz in Nigeria, them the competitive edge and Protection of Personal tre you need cap- a point-of-sale entity called bolster revenue. “Africa is a very Information Act (PoPI) is expect- ital, but there are Ultimate Software in Botswana exciting place and there are cer- ed to cause massive disruption no regulations as well as Appzone, a technology tainly some hubs that are worth to cloud adoption in South Africa, limiting that, so services provider based in noticing from a South African per- but Mophatlane believes it is still you have the Nigeria. In light of this expansion spective. Nigeria is abuzz with too early to gauge its full impact. likes of Standard drive undertaken by BCX, the home grown software develop- ware that is relevant to their own “The PoPI act is still a grey area Bank owning their tie-up between Telkom and ment. We recently bought 30% challenges,” he notes. in terms of where it does and own data centre. BCX will allow the former move in a financial service compa- doesn’t apply. The reality is that Everyone is looking further into the IT services space ny called App Zone in Nigeria. As the world embraces the new information is available in differ- at building their own and benefit from an additional Another interesting country is phenomenon called the Internet ent forms. It is going to be hard and as the data explosion revenue stream through BCX, Kenya, which is definitely on the of Things, companies cannot to enforce it going forward. For continues, data centres which had aimed to have 30% rise. South Africa is no longer the afford to be left behind as con- example people call you daily to remain crucial.” of its revenue coming from the super power it used to be. The sumers expect their devises to be sell you insurance without you African continent in the future,” culture of innovation in those able to talk to each other. This is giving them your contact details. adds telecoms analyst, Ofentse countries is evident on a far big- an opportunity that BCX is ready There is still a lot of work to be Mopedi. ger scale. There is also a big shift for. “The Internet of Things is a done. So how enforceable the act in software development where big part of our 2020 vision. IT will be, only time will tell,” he con- There has been a shift by major they specifically focus on soft- has a way of inventing itself - cludes. 12 13
Broadcasting Broadcasting Online radio to overtake traditional broadcast? Online broadcasting has seen the emergence of several internet According to Icasa’s Communications Officer, Paseka Maleka, the authority does not radio stations including the more regulate online radio stations. popular CliffCentral and Hashtag “Online radio stations are open to Radio and is gaining popularity anyone that is interested, there as the world of broadcasting and are no regulations online and we media moves towards a more certainly have no say in what the digital platform. broadcaster does or says.” The World Wide Web has seen Another radio station that the emergence of new print is rising to prominence on the media with new websites gaining digital airwaves is HashTag Radio. massive appeal to the contrary The station was founded by traditional news, particularly entrepreneur Joubert Botha late Gareth Cliff founder of Cliffcentral newspapers. In the past two last year to create a platform years, South African users for young entrepreneurs and have taken to the appeal of small businesses to amplify their one still needs to acquire a licence this in turn attracts advertisers In South Africa, the majority of Interactive Radio: live streaming music services content and interact with like- to become a broadcaster. and sponsors. Albeit just a year people still consume news, This allows you to open a specific and more recently listening to minded individuals. old, Hashtag Radio boasts a music and content on their app on your computer or mobile the radio live from their mobile “We pay a yearly licensing fee listenership that varies between radio, with digital broadcasting device and gives you some control devices. Botha said the challenges they with SAMRO but our regulations 10 000 and 44 000 per month. appealing to a younger market. over the radio station in question. weathered through when he are not as rigid as with traditional Rina Boomberg, co-founder However, keep in mind that it is Early last year, TV and radio first started the station included radio broadcasters. Running an Botha said “We have two of CliffCentral said their main still essentially radio and thus personality Gareth Cliff left building and fitting their own online radio station costs us just advertising options. Brands can challenge was educating people adheres to a schedule. traditional radio broadcasting, studio and ensuring that the a over a millions Rand for the sponsor a complete two hour about online media, particularly forging a new wave of digital sound quality, equipment year,” he added. show, including the naming the perception of the internet Podcasting: media when he launched settings and studio climate were rights; that is in alignment with being expensive in South Africa. Podcasting is gaining popularity CliffCentral. The controversial spot on. In the cyber space, attracting their strategy. The alternative is With that, digital broadcasting in mainstream media and offers radio DJ and his team broke new an impressive audience is by far that they can request a 30 minute in itself comes with different episodes of certain shows. ground reporting solely online. Regardless of the lack of the most important aspect in in-studio interview.” definitions. When you download them to a regulations on the digital space, terms of growing the brand and media player, they become part 14 15
Broadcasting ICT Security The mass appeal of online content has been fuelling speculations that traditional print media will soon be Cybercrime on the rise in extinct and while that has not happened yet, media houses cannot afford to ignore the fact that newspaper and several magazines are hanging on by “ South Africa lifelines. Could the future of radio be equally as bleak? The old-fashioned broadcasting terrestrial is predominantly the Being a content more popular means among South Africans and while radio stations hub, We aim to are becoming more digital and create shows that perhaps automated, the average The listener still switches their radio exact cost of are entertaining, on to hear their favourite DJ. Cybercrime in informative, South Africa may be a cause of of your broader music and audio When it comes to what we listen varying figures in the industry collection and you can listen to inspiring and to, people love conversational but security experts agree that them in any order. Streaming Services: Soundcloud has gradually become the most used streaming service. Streaming services include different kinds of audio including “ empowering while delivering qualified audiences to advertisers bits, familiar voices, new music they won’t necessarily have time to search for and the future of radio could possibly include that, with the added technology and innovations of your favourite apps such as Spotify, Audioboo the problem is escalating at an alarming rate. The recent reports that a well-known dating site with over 170 000 South Africans on its database was hacked, sent shivers around the banking and IT security circles. podcats. You can listen to specific and Soundcloud. segments of your favourite The potential leak of personal stations but not limited to music There will always be a need for information reported included or any audio available online. and select which show they want radio in South Africa, there are banking details of the website’s to listen to and when, with the several places that currently do members. According to Candice Tune In: exception of what is already on not have access to the internet and Sutherland, a specialist from SHA Tune In lets you search and listen air and that means that waiting with that, terrestrial broadcast says underwriter hackers are now to thousands of radio stations, for time to pass before tuning radio still has a resounding targeting businesses and breach over different genres of music, into your favourite shows is an heartbeat. We could see, in future their security checks. “The 2015 shows and interviews. It is a ancient practice. the overall market grow both Security Report released by Check crossover between being a radio digitally and terrestrial. Point Security revealed that 106 search engine and an audio player. Boomberg agrees “Being a content unknown malware hit businesses hub, We aim to create shows that The digital platform serves every hour. 83% of the 1300 Online radio stations are are entertaining, informative, to grow the overall listening businesses studied in this report » appealing to a broader audience inspiring and empowering while experience but not cannibalise it were infected with malware that and opening up a world where delivering qualified audiences to and with the stage already set by allowed communication with the the listener has control over what advertisers. With the imminent the few contenders, the attention cyber criminals who intended to they want to listen to with built launch of the CliffCentral app, it has been shifted to the modern steal sensitive data during 2014”, in streaming services on many of will be easier to listen live and listener to align with their habits she said. Candice Sutherland, a specialist from SHA the stations. The digital platform to access podcasts to listen on and expectations to ensure the also allows the user to browse demand.” availability of content. 16 17
ICT Security ICT Security Basie van Solms, director of include disgruntled employees, because they find it easier to exploited this theory by hacking the Centre for Cyber Security at negligence on the part of the exploit our trusting abilities real accounts on platforms like the University of Johannesburg, organisation or individual, than to try and compromise our Snapchat so that when you saw says that South Africa is lagging competitors and lastly, hackers. information using other means”, an endorsement for a scam behind Africa when it comes to “Cybercrime is defined as any explains SABRIC CEO, Kalyani product or link, you’d trust it adopting a stable cyber security criminal activity involving Pillay. because it seemed to come from policy and that there is a lack of computers or computer networks someone you actually knew. The overall cyber-security strategy that result in the unauthorized SABRIC urges bank customers to public also undervalued their data and culture. The South African access to; interference with, be careful with what information in 2014, freely giving away email government has been criticised fraud or forgery of data.” they place on social media addresses and login credentials for not having a decisive policy platforms. “Criminals use all without checking that they were and control over the growing Tightening social media available information about their on a legitimate website”, the problem of cyber-crime, which security settings will avoid victim when they apply social reports found. cost the country over R3.4 billion social engineering, a well- engineering tactics as it helps in one year alone, he said. known method hackers use lend some credibility to their While scammers certainly evolved to get credentials. The South communication. Once the victim’s their tactics and ventured onto The total monetary loss as a result African Banking Risk Information trust is gained, it is more probable new platforms in 2014, a lot of of cybercrime in SA is estimated Centre (SABRIC) has warned that the victim will disclose more their success continued to come at over R5.8 billion, with global bank consumers to be wary information”, she adds. from people’s willingness to fall statistics increasing at a similarly of social engineers who trick for predictable and easily avoided alarming rate. “Shockingly, over bank customers into divulging SABRIC also emphasized the scams. 974–million records were lost personal information that they importance of tightening security or stolen in 2014 globally and if normally would not disclose. features on social media sites as Social Media security cybercrime were a nation it would to make it difficult for criminals Criminals will go wherever there be the 27th biggest in terms of Social engineering is a form of to steal your information. “Whilst are people to be scammed. There Gross Domestic Product”, Adds manipulation used by criminals not aimed at extracting personal are large numbers of people using Sutherland. to trick their victims into giving information from their victims, SABRIC CEO, well-established social media up confidential information like social engineering skills are also Kalyani platforms, and, as such, they She says that the four most their confidential banking details. used in other scams to influence Pillay says play host to plenty of scams, the common causes of cybercrime “Criminals use social engineering the victim to take actions that customers Symantec report warns. “The rise should be in popularity of messaging and careful with dating apps means scammers Basie Van their personal have taken note and taken Solms info. advantage, and a variety of Director: scams are being seen on these Cyber platforms”, the report found. Security university of benefit the fraudster. Internet meant attackers could access Media reports Johannesburg dating scams are very prevalent the data stored in a web server’s A recent media report by Fin24 and a good example of how female memory during an encrypted quoting a study by IBM found out victims are lured into paying large session. that cybercrime is costing the sums of money to “help” their new South African industry a fortune romantic interest only to discover According to the report in 2014, as data leaks hamper business that they have been scammed”, criminals hijacked the power of growth, says a study that seeks Pillay warns. “social proof”—the idea that we to quantify the losses. According attribute more value to something to a study by tech firm IBM, one Symantec report if it’s shared or approved by billion pieces of personal data Global IT security company others. The classic example is were lost in SA in 2014, leading Symantec released a report after of two restaurants: one with a to a cost of R432 million. But Heartbleed virus hit the headlines big queue and the other empty. cyber thieves have escalated their in April 2014, when it emerged “People would rather wait in activities in 2015, already costing that vulnerability in the OpenSSL the queue because popularity local businesses R465, million or cryptographic software library suggests quality. Criminals an increase of 7.67%. 18 19
Broadband Broadband Telkom feeling financial year. This is significantly Telkom CEO, Sipho Maseko, more than the company currently has announcing the company’s financial in its fibre-to-the-business network. results, admitted that Telkom was These connections will provide facing a daunting task in the FTTH businesses across South Africa with space as players are. “It’s getting tough the fibre war access to a high-speed fiber optic out there, and as a company we need network via an internet service to make the right response”, he said at provider (ISP) of their choice. the time. Mopedi agrees, “Telkom, like other dominant operators including Vodacom and MTN has just entered the FTTH market, therefore all these operators are on equal footing in terms of trying to establish traction in this arena. However, Telkom’s ADSL The ever increasing urge for faster broadband in South Africa has resulted in a hotly contested are offered on a more nation-wide scale. However, Mopedi says there is currently offering will increasingly come under pressure as more fiber services reach more areas at much competitive battle among traditional operators no clear leader at the moment as prices. It must however be noted that and new niche entrants. The appetite everyone is still laying the foundation. at this stage, Telkom remains the for faster internet over the past few “The fiber-to-the-home market is still only operator offering LTE- Advanced years has seen traditional operators like very much at its nascent stage here in SA, services to the residential market, Telkom, Vodacom and MTN given a run for with real first offerings having entered this could also allow the operator to their money and in some instances even this market at a larger scale late in offset ADSL financial losses that the beaten by new entrants like Vumatel and 2014. Nonetheless, progress in terms of operator is likely to face as result of Fibrehoods. increased market players, infrastructure growing interest in fiber”, he argues. investments and products development The telecommunications company (capped and uncapped fiber bundles) has There is an increase in demand for announced the rollout of broadband with been rather impressive. Fiber services fibre optic network connectivity 38 000 homes recently given access to are also likely to replace ADSL broadband across South Africa, which is partly fibre. They are expected to double the solutions in the medium to long term. due to the country playing catch up fibre roll out to 70 000 by the end of the When comparing both ADSL and Fiber to other more developed markets year and will have the capacity to connect consumer solutions, our (Africa Analysis) around the world. According to more than 150 000 homes by early next recent price analysis report show that Reshaad Sha, Chief Strategy Officer year. This is part of Telkom’s goal of ADSL is rather becoming expensive at DFA, “Although there are several providing access to fibre connection for as consumer fiber prices continue the drivers leading to increased demand one million homes. downward trend”, he says. for connectivity, we have identified that global cloud computing is a The past 18 months has seen South Vumatel, Fibrehoods, Link Africa and critical driver for the adoption of fibre Africa’s affluent suburbs migrate from Dark Fibre Africa have been laying fibre based connectivity. In order for cloud slower ADSL connections to faster fibre in South Africa’s richest suburbs over computing to deliver the benefits of connection. Parkhurst, Craighall and the past year with more areas set to be cost saving, business continuity, and other leafy suburbs are already reaping announced. The cost of fibre to the home, business agility, it requires a secure the rewards of the fibre war. according to many providers, is around and super-fast connection that only a R700 per metre including trenching. fibre network can provide.” Despite the current fibre rush, Ofentse While this might seem like a lot, the Mopedi telecom analysts at Africa advantages of fibre over a typical ADSL, Telkom, has thus hinted to its Analysis says the bubble is most likely is about 200 times faster experts says. potential to become an open-access to only burst at affluent place rather The fibre rush has also split to business operator. The company is gearing to than national currently. “Despite prices with companies needing faster internet open copper access at 200 exchanges drastically coming down in the FTTH than before. on a trial basis to pave the way for a space, my view is that fiber solutions more open access approach will only reach certain affluent areas (in DFA recently announced that it aims to Gauteng, KZN and Cape Town) in the short establish 20,000 business connections Telkom CEO Sipho Maseko says Telkom is facing a to medium term before these services by March 2016, the end of its current daunting task in the FTTH space 20 21
CIO Profile CIO Profile Subsidy System, the darling of the department, says the man Mandlenkosi Xaba the CIO at the who is tasked with ensuring that Department of Human Settlement all IT system are in place. “It (HSS) brings a lot of value within the department. We have three IT directorates; more especially the information management directorate where all the bibles of the department sit, from house application, data, highest needs, houses built, and the relevant data”. Currently the department is busy migrating over 1050 staff from the novel platform to Microsoft enterprise platform. “We have realised that most of our technologies within the department do not interact very well with the Novell platform hence the migration. We have moved the ministry midyear 2014 coming from a Microsoft environment and they insisted on everyone joining Microsoft”, he says. “The second project that we have is that technology changes and evolves and as a department we cannot afford to be left behind. With that in mind the department is changing the IT infrastructure live servers so that we are up to date”. For the department, the use of ICT is crucial as it helps them understand the important aspects like geographical and infrastructural position before Technology for The Information Man- projects they are undertaking. deciding on a settlement. “One agement Directorate part which is crucial is that our is to the Department of Human Though it might not sound like systems are able to tell us where Settlement (DHS) what band- the most innovative department to build houses, for instance, we width is to an internet service in South Africa, the DHS is at the cannot just build houses in places Better Settlement provider. Mandlenkosi Xaba the centre of most of South Africa’s where the amenities like schools, CIO at the department spoke to poor hopes. At its heart lies malls and police stations are far, Digital Focus about what value IT one of the department’s most so that is some of the important brings to the department and the prized possession, the Housing aspects of some of our IT systems. 22 23
CIO Profile “The information we extract from departments with the largest size He says like most government the information management of data and as a result cannot departments it is not easy for systems is able to give us a afford not to consider it. “We have them to go all cloud as there is critical analysis of our progress, one of the biggest data collections just a lot at risk. “With that said successes, challenges and in the South African government its not necessarily a pipe dream, so forth. The housing subsidy and for us analyzing that data is the issue with it is security, how system is a very critical aspect very crucial, we need to be one secure is it? Who has access to of the department because all step ahead in terms of knowing, the information sitting on the records of houses built, demand for an example, where the biggest cloud? What motives will the records and progress reports, just demand in terms of housing will person who gets hold of it have? to name a few, are being hosted come from”. And what best practices are out there”. there regarding the use of cloud With technology ever evolving technologies? As Government With Big Data and Analytics organisation are also faced Information Technology officers taking the worlds of ICT by storm, with the prospect of the new Council (GITOC), we have made DHS says they are among the phenomenon of cloud computing. deliberations on it and the State Information Technology Agency (SITA) wants us to adopt cloud but as a department we need to get assurance first in terms of its security”. It’s the biggest problem in public sector, you skill people and then soon those people are gone, what we can only do is to incentivize, that’s all we can do, we can’t compete with the private sector”. As government tries to modernize its aging infrastructure and legacy systems, challenges associated with service providers are halting progress. Over the years government has been trying to implement the Integrated Financial Management System (IFMS) that has been riddled with delays. The tender has been cancelled at least twice as service providers are at loggerheads over the contract. This he says has been one of the biggest problems for government in IT. “It is a big problem and the challenges are always there. IFMS is a great concept but by the time it’s here it will be completely outdated. It will not be talking to the requirement of the government at the time but only time will tell. It is unfortunate but that’s how things are turning out to be. We have wasted more than 10 years already”, Xaba said. 24 25
Systems and Applications Systems and Applications Carve out a niche 1 A few years ago I realised that the South I surmised that the skills would not only African market was starting to become sat- be scarce in South Africa, but also in many urated with SAP consultants, so the high other countries. Hence, we found a niche for rates they once commanded were starting ourselves, one where we had already spent to sink. At the same time I saw that there time developing skills and partnerships we was growing demand for Sage ERP X3 skills can take into the international market. - a product aimed at mid-range companies that want an affordable and flexible ERP suite. 2 3 Get the culture right People are the key to success in nearly any business, and especially in consulting. You need to think carefully about what skills and competencies you’ll need to succeed, and Johan Botes Group even more importantly about the business CEO Consilia culture you’d like to drive. For Consilia, we recruit entrepreneurial people at a young age The technology is and embed them into our business. available, so use it In the past few years, high-speed Aside from management, most of our employees are graduates broadband has become perva- aged under 27. We made a conscious decision to recruit people sive, cloud computing has given who are adaptable, self-motivated, and quick to learn because Building an international us a great deal of flexibility into we need to be able to work overseas independently. We value how we buy and use ICT services, business acumen and energy as much as experience and qual- and collaboration tools such as ifications because these qualities can’t necessarily be trained Lync have matured. Today, it’s self funding business into someone who doesn’t have them. easier than ever to manage a business from a briefcase if you have a good notebook, a modern smartphone, and the right ser- vice provider in the background helping to keep your infrastruc- Founded in 2012, Consilia is an independent ICT Over the past three years, we grew our organisation into a healthy South African business, before years ago, but it was only around four years ago that the condi- tions were really right to launch. ture running. We run off Internet Solutions’ consulting firm that carries no spreading our wings with our off- Suddenly, we saw the skills, mar- global backbone, making it rel- » debt and which has been largely shore expansion plan. Today, we kets and technology we needed to atively simple and affordable to self-funded since it was estab- have practices in the UK, Middle start converge. set up a new branch anywhere lished. Group CEO Johan Botes East and Australia, with plans to in the world. With very little fuss, tells us how his company has expand to the US next year. Here are some lessons we’ve we can plug new employees and grown into an international oper- learnt from globalizing our busi- clients into this backbone with- ation over the past year. I first started developing the idea ness. out needing to make huge invest- for this business seven or eight ments in technology. 26 27
Systems and Applications 4 Support the team Hiring self-starters doesn’t mean leaving them completely to their own devices - in a global working environment you need to provide structures for training, mentoring, performance management, and incentivizing staff. And if someone is struggling, they need access to help and support. We don’t hesitate to bring someone home for a while if they’re struggling overseas, for example. 5Define your markets carefully Exporting skills can be a com- plex and risky business. That’s why it’s important to do a careful due diligence on every potential new market, carefully looking at market demand and needs, the cultural fit with your business, and the practical barriers such as regulatory requirements and language. For example, we’re focusing mostly on English- speaking countries for now, even though we recognize that there are some great opportunities in South America and Asia. In conclusion, we believe that success is about product, people and infrastructure. Get the mix right, and you can today build an international business without needing to make a huge capital outlay. 28 29
Systems and Applications Systems and Applications Top ten SAP #2 Stakeholder involvement SAP is often viewed as a Too often, technology solution, and is consequently ignored throughout companies implementations the company until Go Live. The users then have complaints make that what is being delivered decisions on is not what they expected. An investment in SAP is significant implementation mistakes to avoid and highly transformative for the partners based business, both from a business process perspective and in terms on the lowest of accessing information. price. The company needs all stakeholders to be accepting Implementing effective Enterprise Resource Planning of the new solution, and must intimately be involved in making the implementation a success. (ERP) systems, such as SAP is Importantly, this buy-in must fundamental to any company’s efficient start at the top. operation and underpins its growth #3 The right partner strategy. If not delivered effectively, The Board, the CEO, and the Too often, companies make This is why you need to choose these implementations can be very executive management team decisions on implementation an implementation partner based expensive, take a long time, and can must drive this as a business partners based on the lowest on a long-term, mutually bene- ultimately cost your business enormous initiative, and the transformation price. While price plays a role, ficial business relationship. Your amounts of money in lost revenues that process must be embraced by the cost of the implementation partner must walk the road with dwarf those implementation costs. everyone in the company. is generally dwarfed by the you, and needs to be innovative, potential revenue losses that a capable of tracking SAP’s strat- We often tell customers of the pitfalls bad implementation can result in. egy closely, and be prepared to of these implementations, and just as invest with you along the way. often they disregard these warnings and press ahead, making the mistakes that lead to higher costs and inefficien- cies than they were attempting to avoid. #1 Technology choice To help your business avoid making Companies deciding to implement an ERP solution based on these mistakes, we’ve listed our top 10 an ROI calculation will be disappointed, because it is nearly mistakes, complete with solutions so impossible to measure, and leads to frustration when intended that when you implement SAP, you are targets aren’t achieved. The decision to implement a technolo- able to go from strength to strength. gy platform must be made based on strategic criteria. You need to choose a technology platform: #4 Hurry up and wait – Whose long-term strategy matches the company’s business All too often, companies take a long time to evaluate the tech- strategy; nology and their partner, only to then rush headlong into the – That is proven; implementation to make up for ‘time lost’. » – That has rich and extensive functionality; and – That is developed by a company that is sustainable and This is a classic ‘hurry up and wait’ error, where comprehen- successful. sive planning has been disregarded once the decision has been Over the past 25 years, SAP has reinvented itself many times made. Frequently, we find that little to no time has been taken and has kept at the forefront of ever-changing technologies and to plan the implementation in every detail, mobilise the best business needs, thus proving that it is a good, strategic, long- business resources to be involved in the implementation, and term investment. ensure that the business understands what is coming. 30 31
Systems and Applications Systems and Applications I believe companies should… #6 Replicating a bad thing #7 Bad data #9 Inadequate training – Undertake a roadshow led by the A common mistake that is made If the emergence of Big Data has The fact is that the number of knowledgeable project team members executive team to communicate by companies is to replicate what taught us anything, it is the value and ‘super users’ are dwarfed by the number of SAP users that must be reasons for the implementation, they have in their current lega- of accuracy. SAP is data hungry trained prior to Go Live. The sheer volume of users in need of system involvement of people as project cy systems in SAP. Why is this and cannot be operated without training is problematic. This is only compounded by the fact that when resources, and eventually as users; so bad? Simply, the integrated accurate data. Bad data causes training happens, it is both rushed and transaction based. This results – workshop key business metrics nature of SAP and the way SAP is transaction problems, and ulti- in poorly trained users who have low confidence in their abilities. with the executive team so that the designed along business process mately can bring your company’s project team can build the solution lines is very different to the way SAP environment to a standstill. You need to have a well thought out, comprehensive training strategy with those metrics in mind; and in which legacy systems work. As a result, data cleansing and that is effectively delivered well before Go Live, and only after several – plan, plan, plan. data migration is a critical aspect iterations have been done. Replication of business processes of any implementation. #5 Too much too soon and reporting requirements is Lengthy, ‘Big Bang’ projects that costly and a waste, so in the long- Often companies don’t put look to deploy enormous func- term you need to change this enough energy and focus into this tionality can be destructive to approach and dispose of these area, which is one of the main your business. Whilst SAP has a custom solutions. reasons for Go Live delays. huge amount of functionality that can be deployed, implementing When designing your solution, use The solution? Start this process #10 Unstable Support too much of this functionality at whatever best practice processes at the beginning of the project, If you have implemented SAP, it is once can cause long lasting prob- SAP provides in its standard prod- make sure that the necessary imperative that you have a long- lems. uct, and be open-minded about data mapping is done early, and term strategy for its support. Too how you access information and ensure that the data from legacy many companies forget about You need to get use from your SAP minimize your enhancements. systems is holistic and hygienic. their SAP investment after Go Live. software as soon as possible. The At best, they undertake basic user best way forward is to put the support. This causes the system basics in first, stabilize the solu- to degenerate and the company tion, then grow the functionality doesn’t receive the expected in a structured way over time. benefits. To combat this, your company needs to continue with application lifecycle management and In summary ensure system improvement When it comes to implementing and optimization is continuously SAP, or any other ERP system, it managed. is crucial that these pitfalls are avoided. They cost time, money, and lead to greater inefficien- cies throughout the company. It also leaves a bitter taste in your #8 Lack of process education mouth whenever you consider Depending on how big a jump you It therefore should be a priority implementing any new system, make from your legacy systems for you to undertake process whereas your experience should to SAP, you need to assess the education before business users be one that proves over and over degree of education required in become involved in blueprinting a again its benefits and advantag- the business. While this may sur- solution. Not only are these users es. That is the mark of a success- prise you, it is common for many able to play a positive role from fully implemented project. users to not understand the busi- the start, but are also empowered ness terms, processes, as well as to authoritatively fulfill their the upstream and downstream project roles. effects of transaction steps used By Paolo Masselli – Chief in SAP. Operating Officer at Britehouse 32 33
Mobility Mobility Mobile Health Solutions enabling efficient healthcare The biggest technology trend in Africa, and the one that is making the biggest the responsibility of educating consumers and nurturing widespread adoption is integral. potentially an easier way to deliver mobile technology’s benefits to patients without having to tackle Allowing healthcare field agents to consult with patients, collect the necessary information and relay medical supply chain are avoided and citizens are guaranteed of having access to the medication health services, but can by no means function as a replacement for basic health infrastructure. impact on the everyday lives of This aids in improving the citizens’ infrastructural transformation at it back to specialists to receive they require. mHealth disruption, including the people is the rise of smartphones healthcare experience without this stage. treatment recommendations. ability of health professionals and feature phones. needing their participation. Taking into account that South With the use of enterprise mHeath to monitor patients, whenever, These initiatives improve access Africa has one of the lowest life apps, health organizations wherever, requires funding to Africa has seen the fastest uptake To adopt mHealth solutions, the to medical supplies, track expectancies in the world, mobile and businesses can play a role provide the right automated, of mobile devices in the world and facilitation of Electronic Medical immunizations, and allow remote technology could change that in creating an open dialogue digital infrastructure to hospitals. mobile subscribers are set to hit Records (EMR) systems need diagnostics potential to transform and if leveraged correctly it can between the government and the This is a long and costly process, half a billion in the next five years, to be deployed. These systems the entire regional healthcare improve the quality of life and life people – particularly in times of however forerunners in the Middle according to the GSMA. enable health organizations to landscape, resulting in higher expectance of its citizens. crisis. A great example of this is East have proved that this can be pull, analyze and share patient referrals, faster diagnoses and an IBM driven mobile initiative in done, at least in small stages. This statistic supports the fact medical histories and ultimately a dramatically improved patient In Zambia, the government Sierra Leone that is enabling the that mobile technology is and will integrate these records into experience. partnered with IBM to deploy a citizens to report Ebola-related Until the infrastructure challenges continue to be the most powerful mobile health apps. mobile programme aimed at issues and concerns via SMS or can be overcome, hospitals and communications platform in Telehealth apps enable citizens in better managing the inventory voice calls, creating a new channel other health entities should look to Africa. Driven by cheaper mobile Currently, most of Africa’s remote areas to access specialized and delivery of 200 life-saving to communicate their experiences build-in enterprise mHealth apps devices and continued innovation healthcare ecosystem encourages health care professionals in real prescription drugs. Staff from directly to the government. to begin transforming their back- in the mobile space, mobile citizens to select a variety of time. With the assistance of mobile three local health facilities are end processes and start taking technology has the power to and doctors and specialists instead diagnostics, health professionals now using mobile devices with These apps help connect the dots quality healthcare solutions from will transform the delivery of of one primary care physician. are able to send test results barcode scanners to record stock in the event of a crisis, they act the few to the many. healthcare service into Africa. This makes the consolidation and from the field and outlying areas and generate real-time views of as an insurance policy against ownership of medical information and have access to specialized supplies. For a country that sees pandemics such as last year’s The obstacles we face in Africa, a challenging situation in this healthcare professionals all over around 100,000 deaths each year Ebola outbreak. As much as these however, are the infrastructural environment as information is the world. This reduces the need due to preventable and treatable apps improve agility, efficiency challenges that are hindering the not from one source, but from for patients to travel hundreds diseases, the benefits of the and regional coverage, these adoption of consumer facing apps multiple sources. of kilometers to visit a GP or a mobile-based system are self- systems need to be installed and and limiting integration with local specialist. evident. employees trained up before they health systems. There is however Inward facing enterprise mHealth are effective. a way to circumvent these. apps, which improve the logistical Enterprise mHealth apps have the The solution allows workers to and operational efficiency capability to enable a “distributed” transfer supplies and identify Enterprise mHealth apps offer a By Ahmed Simjee, Executive By implementing apps internally, of healthcare solutions, are model of healthcare provision. stock trends. As a result gaps in the way around the lack of physical Smarter Planet, IBM, South Africa 34 35
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