Business connectivity is the beating heart of the SME revolution. Is your Internet Service Provider helping you use it to drive profits or simply letting it become a drain on your expendable bank balance? Jarryd Chatz, CEO of BitCo, explores this question and explains how businesses can ensure they choose the right ISP.
New digital capabilities have blown the lid off the traditional start-up mentality, effectively levelling the playing field. Where business used to be conducted within a limited border, it has since transitioned to an infinite web and, according to the International Data Corporation, South African companies are expected to spend around $10bn populating this digitally connected business network in 2017.
With more prepaid options, WiFi hotspots and Fibre lines than ever before, internet connectivity is growing at an alarming rate. This opens the door to a previously untapped market of consumers and greater access to existing ones.
So, it makes sense that ICT products and services are getting a bump up the budget priority list, but do you know how your ISP could be negatively impacting the return on your investment?
Vague uptime guarantees tend to miss the mark
“Reliable” is a word a lot of ISPs throw around, but like “successful”, it’s a relative concept. Their idea of reliability might only be 80% uptime, while BitCo’s is 99%.
Without defined and agreed upon standards, you could find yourself running up a hefty phone bill and wasting productive hours to solve a problem that ends up costing you more than the initial cost saving.
External suppliers are as good as loopholes
Any ISP who is not a Tier 1 telecommunications operator uses external suppliers. This poses several threats to your bottom line. First, their assurances are limited or subject to change. If a supplier changes their offerings, your ISP may be forced to do the same, putting you in line for potential unforeseen costs.
Secondly, you won’t be able to place accountability squarely on their shoulders, because they can point the finger or pass the buck when something goes wrong. This makes recuperating lost funds a difficult, lengthy and often futile process.
The last inconvenience linked to a complicated supply-chain is a lack of priority. When it comes to contention, a carrier that uses third party suppliers cannot offer you an eternal greenlight, meaning that how and when you do business won’t always be up to you. This could get in the way of lucrative, time-sensitive opportunities.
Nothing stands without support
A house of cards stands well enough, as long as no pressure is applied. The same applies to your ISP agreement if you don’t get clarity on customer support. If you can’t respond to pressure quickly and in an effective manner, it could wreak havoc with your customer retention and conversion rates, as well as put a dent in your business’s reputation – all of which comes with a financial backlash.
Inflexible solutions block the way to progress
Integration and mobility are just two of the biggest trends businesses have had to adapt to in the last decade, and there will of course be more to come. These will force your business to evolve or to change its course in unexpected ways.
In this case, saving money in the long run means choosing an ISP with solutions that can change as you do. From wireless solutions that can run at 5Mbps to 100Mbps, or moving from IP to a virtual PBX – smooth transitions mean less budget dips.
Bigger is not always better
Large telecoms providers may be able to offer more affordable connectivity options, though less capabilities to customise solutions – not to mention less motivation to do so. This could result in you paying for more than you need to, or saving on some initial fees but having to settle for corner-cutting solutions instead of tailored ones.
At the end of the day, the competitive advantage SMEs have over large-scale and more established companies is their ability to adopt transformative technology with relative ease. That’s why it’s important for them to seek out service providers who enable that competitive edge, instead of those that hinder it, delivering little in the way of legitimately profitable products and services.
Changing The Shape Of What’s Possible
Here’s how TomTom Telematics is changing the present (and the future), and the lessons in innovation that you can learn from a game-changer.
- Player: Thomas Schmidt
- Company: TomTom Telematics
- Position: MD
- Visit: telematics.tomtom.com/en_za/webfleet/
To be a successful company in today’s fast-paced and ever-changing market, you need three key ingredients: Access to markets (which starts with products that clients need), short-term agility and long-term goals.
Consider the epic success of Apple. Steve Jobs was hungry and fast — he drove his teams to achieve more in less time. But he also had a long-term vision that directed the business’s trajectory. True innovation is the result of looking five to ten years into the future, and laying the groundwork now for where the company needs to be then.
TomTom started out in 1991 as a software provider for Palm Pilots, long before the Internet was a thing, or GPS had been opened for civil usage. Today, the listed company’s latest acquisition is Autonomous, a business that focuses on navigation systems for driverless cars. Over the course of almost three decades, TomTom has consistently focused on what comes next: What do consumer and business clients need, where will technology take us, and what will be possible in the near future, enabling greater efficiencies?
Thomas Schmidt, MD of TomTom Telematics, unpacks the five lessons TomTom has learnt while developing world-class solutions for the consumer and B2B markets worldwide.
1. Focus on the problem you’re solving, not on the product you produce
Companies that are too fixated on what they do, instead of where technology and markets are heading, will often find themselves left behind. The most common example is Kodak, who refused to see the dangers digital photography posed. Instead of seeing themselves as a company that helped people capture moments, they saw themselves as manufacturers of films and cameras. The rest of course, is history.
Robust businesses reinvent themselves, adjusting solutions to fit the market and making use of technological breakthroughs. “In 1991, the founders of TomTom launched a company called Palmtop,” says Thomas.
“They designed and created the software for digital organisers. In principle, it was like a smartphone with no connectivity, and included a digital bible, a digital cookbook, a personal organiser, a calendar and a whole host of other features. By the late 90s it even included a digital map, which they had licensed through Tele Atlas, a Belgian company that developed very basic digital maps.”
Here’s how it worked: You bought a PalmPilot, purchased the map software, uploaded it to your device, and then purchased the cables and mountings that you’d need to instal the whole system in your car. It was complicated and something that only techies were really trying out, but it triggered something in the TomTom (at that stage Palmtop) team, who recognised that if they could remove the tech hurdles to get there, they’d democratise navigation.
The company had been a forerunner in the personal organiser software business. Based on where they believed the market was heading however, they began to shift their focus to hardware, and began manufacturing personal navigation devices (PNDs), complete with digital maps licensed through Tele Atlas.
By 2003 the business had been rebranded to TomTom and their first device, the TomTom Go, was launched. From there the business consistently grew 400% year-on-year, and an IPO was concluded in May 2005.
In hindsight, the shift looks simple, but in reality, it’s never easy to reinvent yourself as a business, unless you’re agile, adaptable, and willing to focus on the best solution, rather than what your current product stack looks like.
2. Always look ahead
Great visions always precede technological solutions. If they didn’t, nothing would ever progress or change. The companies capable of those visions become the trailblazers and game-changers that shape industries, solve problems and drive greater efficiencies.
The evolution of TomTom’s dynamic map data is a perfect example of this mindset in action, because the team kept asking what would make their product more useful to consumers. They had the device, and a digital map. What they didn’t have was mobile data.
Instead, Tele Atlas had vans driving around, capturing everything. It was time consuming, expensive, and meant maps were always out of date. They also weren’t dynamic.
“When you consider the fact that 15% of a map’s data changes yearly, we knew there was so much more we could do with this product if we just had the right tools, and developed appropriate solutions,” explains Thomas.
TomTom’s team started by looking to the future: What did they want this product to look like? The answer was simple: They wanted a navigation system that was dynamic and up-to-date. If anything happened, a user would know within minutes. This would include traffic, accidents, traffic lights that weren’t working, delays — anything and everything that would add value to a motorist or business with vehicles on the road. Today, this includes data drawn from how a vehicle is operating and how the driver is performing, right through to its location with regard to a dynamic map, and the capability to send companies and clients up-to-date information.
The technology that has made all this possible came after the idea of what the team wanted to achieve. With the right starting point, they were able to develop solutions that were possible. “We had millions of units on the road. We created a functionality that allowed users to update information on the map when they plugged it into their computers to update the software.”
The problem was that it was a slow process. By the time TomTom gathered the data, sent it to Tele Atlas, and the changes were implemented and released in an update, months had passed. Consumers lost interest because it took so long to see a change.
So, the team went back to the problem to engineer a different solution. “We went back to the data we were collecting, and started comparing that data with the map. What were speed averages on different roads? Based on this, we could predict times of the day when you could expect traffic congestion and delays. We also paid attention to roads on the map that no one used, or areas with no roads that nevertheless had traffic. These were flagged as out-dated areas on the map, and we could send vans to check those areas only. It was all based on historical data, but we were adding more information to the map on a continuous basis.”
The next component to be added to the mix was telematics. Thomas’ company, Data Factory, was purchased by TomTom in 2005. “Telematics brought more data early on to TomTom. This was real-time data that could be deployed elsewhere. In the early days we were using trunket radios to capture data, but it was all fed into the system. An average car spends less than an hour on the road each day. Compare this to six hours for a business car, and up to 12 hours for a truck, and you’ll get a view of how much data we were actually collecting. The trick was to continuously ask how we could use the data, and what we could do with it. It was not yet a dynamic system, but we were constantly moving forward and improving. We kept asking, ‘If we had this, what could we do with it?’”
TomTom also made another decision, and offered to purchase Tele Atlas in 2008. “We recognised that the future was fresh, up-to-date data. If we owned the maps, we can streamline the process. Two different companies, even working in partnership, create a lot of delays.
“Increasing efficiencies wherever you can is in our DNA. That’s what we do for customers. And it’s why we’ve been able to offer our customers up-to-date dynamic maps that are data-rich and create a seamless customer experience.”
3. Adapt to the future
This takes the ideal of looking ahead a step further. On the one hand, looking ahead is focused on the lane you’re currently in, and envisioning how you can change customer lives. But it’s also about paying attention to how the world is changing, and what the future will bring.
TomTom is currently a software and hardware developer. The business has four divisions: TomTom Consumer, TomTom Automotive, TomTom Licensing and TomTom Telematics. In each case, hardware and software solutions are deployed to drive efficiencies and cost savings, from consumers with a TomTom device in their vehicles, cars with onboard systems designed by TomTom, telematics systems that track a business’s entire transport and logistics solution, to the map data as one of the sources for Apple’s map solution.
But TomTom is looking much further than the solutions it currently offers. “TomTom democratised navigation, and today it’s available in multiple different ways; your phone, a device, your car. We understand this and move with the times. We expect technology disruption to go on and things to change even faster in the future. Today we manufacture devices. We don’t believe we will still be doing this in the long-term future. How our solutions will be accessed will change. We are also now investing heavily in the navigation systems and maps autonomous cars will use. This isn’t a big revenue stream for us now, but it will be incredibly important in the future, and we will have solutions ready.
“To stay alive, you need to be smarter, faster and the master in your specific area of competence. At our core we bring customers, data and development together. It’s always about the best experience and solutions.”
4. Be fast, agile and adaptable
Even though TomTom is a listed company, its controlling shareholding rests in the hands of four people — all of whom are entrepreneurs. “TomTom’s original founders still head up the business and drive its vision, and the four different business units are run by MDs who are entrepreneurial as well,” explains Thomas, who is one of those MDs, and who by his own admission could never be a standard employee.
“Data Factory was the third business I built, and I sold it to TomTom in 2005 because I knew this was the best way to achieve international growth. 12 years later I’m still here as MD of the Telematics business because our CEO and founder, Harold Goddijn, convinced me to stay and grow the exciting business unit. The fact that we’re given so much autonomy to grow each business unit as a company makes us fast, agile and adaptable. It’s the essence of this business. We all have a fiduciary duty to our shareholders, but we also have long-term visions that allow us to be trailblazers in our industry.
“We’re not executives who begin to implement projects and then leave. We’re focused on long-term, industry changing visions that will change the way our customers operate and do business. That’s what gets me up in the morning and keeps me constantly engaged and excited.”
The business is also run on a system of flat hierarchies, which Thomas believes is a key ingredient to TomTom’s success. “No single giant can know or understand everything. To remain relevant, businesses need fresh ideas, and these come from open and collaborative teams. As the leader, you don’t need to come up with all of the ideas — but you do need to be open to fresh thinking, even from your juniors. Have an open door policy, and listen to ideas when they are shared with you. That’s how you push the envelope.”
5. Give customers what they need, not what they want
Listening to customers is important, but you also need to look beyond their current needs if you’re going to be a game- changer — both in your own industry, and in terms of what you can do for your customers.
“Take note of your customers’ pain points and deliver solutions that create value, but you can’t innovate if you only listen to what your customers want. You need to be delivering to their needs, otherwise you’re just an executor and not an innovator.
“It’s up to you to jump to the next step that they can’t see yet, and often don’t even realise is possible. Customers are focused on the now — we need to be looking five years ahead.”
How do you stay ahead of the curve though? Thomas believes it’s all about asking the right questions.
“Consider the question, ‘What if we had unlimited energy for free in the world?’ So many people stop there and don’t ask further, because it’s seen as an impossibility. And that’s what kills innovation. If you remove that obstacle, and instead look at what this would mean for the world, you can start shaping a different future.
“So, what would it mean? It would mean an unlimited water supply, because we could easily make drinking water from salt water, at little to no cost. What does unlimited drinking water mean? An unlimited food supply, because water is the biggest restrictor. Once you start asking the right questions, you reach a future that you want to be a part of and make happen — and that’s when you start finding solutions.
“Solar is already doing this, at 50% of the cost of other alternatives. The latest technology delivers at 50% of the price, and it was developed because the right questions are being asked.
“This is how we operate. We are always dreaming about what we could do. This allows us to create solutions. They don’t always work, but we’re hungry, and when we fail we fail fast, learn the lessons we need and push on. We’re always heading in the right direction, and changing the shape of what’s possible.”
(Video) TomTom Telematics – Let’s Drive Business (UK)
How Sasfin Bank Is Beyond A Banking Platform – The Evolution Of B\\YOND
From opening a business bank account in one day to advanced business analytics at the touch of a button, B\\YOND is asking business owners what they need most from a banking platform — and delivering on it.
- Visit: www.sasfin.com/bank/byond/
- Call: 0861 SASFIN for more information
Imagine you pay millions each month in rebates. The thousands of transactions are batched and go out on the first of each month. What happens if a few are incorrect and the entire batch is rejected and needs to be recaptured?
For one business owner, the entire process meant that he always needed to be available at the beginning of the month and customers were often paid late, creating a reputational risk for his business and limiting his opportunity to grow his portfolio with existing clients.
It was a huge pain point that many entrepreneurs share, and one Sasfin’s online banking platform, B\\YOND was determined to fix. “We asked real business owners to tell us what the banking issues were that they either hated the most, or that affected their businesses the most,” says Rodger Dunn, Head of Transactional Banking at Sasfin.
“This is just one problem we’ve solved, and since joining our platform, that same entrepreneur can now work remotely, knowing that his rebates will be paid on time, even if a few transactions need to be fixed.”
The Evolution of B\\YOND
What do business owners need most? What are their pain points and what tools will help them make money, save money and be more efficient? How can we deliver these solutions in a simple-to-use, intuitive way?
These are the questions that Sasfin’s B\\YOND team sat down to answer when they began working on their new online banking platform. In addition to offering business owners a platform where they can transact online, they wanted to build a strategic business tool that solved real everyday problems for entrepreneurs.
“We launched in March this year with a platform that offered much more than the normal functionality of online banking,” says Rodger.
“Through B\\YOND, our customers are able to apply for a business bank account online; perform their own payroll management; create and send personalised quotes and invoices directly from the platform; manage revenue and expenses; and connect their Sasfin Bank transactional data with Xero, the fastest growing Cloud-based accounting software provider in the world.”
For B\\YOND users, this was just the beginning. “Customers already on the platform will find additional functionality being added regularly,” explains Rodger.
“We have a vision, but we are also listening to our customers. Within the core team are two business owners who bring key insights to the product, but we also have a closed group of businesses that regularly test new functionality.”
B\\YOND’s key competitive advantage is how the entire platform integrates traditionally disparate functionality into one portal. “Everybody offers an accounting package, transactional banking, a credit card and so on,” says Rodger. “However, B\\YOND’s platform integration and how we make everything work together is our advantage, because that’s how we save customers the most precious commodity: Time.
“Let’s use Xero as an example. Instead of manually populating payments, with Xero you get secure, direct daily feed integration from your Sasfin bank account into your accounting software.”
Removing banking barriers
“B\\YOND’s Cloud platform enables us to take any manual process and make it digital. The benefits of this are endless, but we started at the beginning of a banking journey and worked our way up from there,” says Rodger.
“If you want to open a business bank account, you generally need to meet with your banker or stand in a long queue at a branch. If there’s more than one shareholder or director in the business, multiple parties need to be at that meeting. Once the bank has laid out its value proposition and you agree to go ahead, you then have documentation to fill in, which everyone needs to sign.
“As a result, setting up a business banking account can take up to a few weeks with multiple in-person engagements. We saw an opportunity to change that by creating a seamless, online process. If you have everything you need, you can have a business bank account up and running on the same day that you begin your application.”
How has Sasfin managed to fundamentally change this time-consuming and paper-based process? “We’ve taken something that’s serial in nature and split it into parallel processes,” explains Rodger.
“Our objective is to remove as much of the friction and barriers of opening a business bank account as possible. We’re a technology-based business, but we’re also high-touch. Technology should be an enabler, it shouldn’t take the place of people or complicate processes. We understand that business owners don’t only want to deal with a platform. They want consultants who understand their business and needs.”
Thinking out the box
As an alternative bank, Sasfin has looked for ways to make business banking more efficient and supportive of entrepreneurial needs, while lowering the costs for clients.
One way this has been achieved is through a branch-less and ATM-less environment. Sasfin customers can draw money for one flat fee from any ATM across the country.
“You’re paying for usage, instead of an entire infrastructure you hardly ever use,” says Rodger.
B\\YOND plays a key role in this value proposition. “Instead of migrating businesses onto different platforms as they grow and evolve, we’ve kept things simple. More people and money generally means more controls. As businesses grow and more people need access to the banking platform, the system becomes complicated and more expensive. Those platforms were designed for large corporates, not growing entrepreneurial businesses.
“We have reduced the costs and complexities that corporate-focused platforms often come with. Our platform allows you to bank in a manner that supports your particular type of business, for example the platform caters for one or many users in a business with view access that aligns to the person’s role in the business.”
Another key functionality that B\\YOND has added is client classifications. Everything can be tagged and categorised. At the click of a button a full recon can be pulled, showing what was spent. All recons can be done directly from B\\YOND’s banking platform.
Looking to the future
There is a lot still to come. “We are building one single platform that you can run your entire financial management through.
“Our three-year goal is for B\\YOND to be a business analytics tool that entrepreneurs can access through their Internet banking platform,” explains Rodger.
Bank outside the box
The Sasfin Transactional Banking Business Account is designed for SMEs that want to focus on what they’re most passionate about — their business — while their banking platform sweats the small stuff, but also helps manage and grow their business.
- Do you spend unnecessary time on banking?
- Does your bank pay you market-leading interest rates?
- Does your bank give you easy cash management in real-time?
- Would you like to manage your payroll and invoicing from your bank account?
- Does your bank help you keep track of your cash flow, manage your admin, and provide tools to help run your business successfully?
Sign up today and have access to a whole new world of better banking for your business.