Using cloud services is about getting services over the web, instead of either using a CD or disk to install software on your computer or buying some bulky computer equipment for your office.
The advent of web and cloud services in South Africa marks a turning point in business efficiency and how competitive businesses can be. How? Because it gives SMEs in particular access to a full range of world-class services with high-end features that were previously only available to big companies with big IT departments and big budgets. Services are now available on demand – at the click of a button – and pricing is based on usage which means there is very little wastage.
Actually, the cloud is not all that new. We have been using cloud-hosted email for years already – Gmail, Blackberry. The word ‘cloud’ has just become clearer now. It’s also more topical nowadays because it’s having a knock-on effect for other related industries too: data storage, virtual servers, CRM, payroll, document processing, banking, and business telephony.
Once upon a time, the use of information technology services was novel and it gave businesses a significant competitive advantage. We saw massive ERP, database and processing type systems designed and built for large corporates. However, like all advancements, eventually it is made possible for these services to be provided more efficiently and more widely. Much like a hundred years ago when transmitters made the use of electricity more commonplace – by being able to carry electricity from the generator over long distances – so the cloud is now providing anyone access to more advanced technology and services.
By using cloud services for business, the benefits are implicit:
- You can focus on your core business. You don’t need to manage the service yourself
- The cloud opens the door for smaller business that would not have been able to afford the full cost of ownership
- You can access services on demand and make the transition to the next level as your business grows. There are no upfront prohibitive costs
- Cloud services are accessible everywhere you have an internet connection. You are not reliant on a specific computer/machine at a specific location
- With a wide array of devices used today, the cloud is even more important for enabling access from multiple phones, tablets, computers, etc.
Business telephony turned on its head
One good example of how the cloud works for businesses is in the telecommunications sphere. In the past, a business used to need to buy a big expensive telephone system and face the ongoing maintenance costs of that system. Dealing with business growth on these systems was another problem because you would need to make another purchase if you needed more capacity, if you set up a new branch or if you needed additional or special functionality.
Cloud computing has brought cloud hosted telephony systems like www.officeconnection.co.za. Suddenly the old paradigm of business telephony is turned on its head – even a small start-up entrepreneur can access high quality business communications. With telephony provided as a simple web service, this means you can register online, get an office number to present to clients, add all your staff and their extensions and manage incoming calls to decide which staff member should answer, or set up a virtual receptionist … all through a web interface. It’s much like managing your email account.
The ease of getting all kinds of critical services in the cloud is affecting many business functions and, more and more companies are lining up to provide services. Some local and international examples are:
- Document Processing: www.google.com/Apps; www.office365.com
- Business Email: www.mynextmail.com; www.google.com/Apps
- Project & Task Management: www.asana.com; www.jivesoftware.com; www.podio.com; deskaway.com; lighthouseapp.com; basecamphq.com; www.smartsheet.com; Information Management: www.teamlab.com; www.huddle.com; www.centraldesktop.com; pbworks.com
- Customer Relationship Management: www.salesforce.com; www.pipelinedeals.com; www.zoho.com/crm; highrisehq.com; www.sugarcrm.com
- Customer Support: www.zendesk.com; www.activecampaign.com; www.assistly.com; uservoice.com; getsatisfaction.com
- FAQ’s/Knowledge bases: www.nanorep.com
- Virtual Services & Data Storage: www.rsaweb.co.za; www.hetzner.co.za; aws.amazon.com/ec2; www.rackspace.co.za
- Payroll & Financial Management: www.payspace.co.za; www.vippayroll.co.za; FNB Instant Accounting;
- Design & web design Tools: www.sampleboard.com; www.yola.com;
- Business Plans: www.liveplan.com; www.bplans.com;
In deciding if a cloud service is any good, it’s worth considering the following: the service must be fully exposed through an easy-to–use web interface and you should be able to do all the things you need to do for the complete service. You should not need to call the company to set up the service.
- The service should be fully comprehensive and save lots of time and money (compared to what you would have had to do in the past). In other words, it’s not okay to get a half product just because it’s more affordable. You should be getting a high-end product. Quality should not be compromised at all.
- The service must be locally relevant. For some services this doesn’t matter at all, but for financial management and payroll, local regulations, such as tax laws, are important.
- The service must be accessible from multiple devices and not just computers. The point here is that you should not be tied to a specific device and should be able to access the service from multiple points.
Your business, no matter how small, can function like a world-class business by using cloud-based services. There are so many affordable tools available to entrepreneurs today; tools that are so good that even large corporate companies are starting to use them. Some of these tools are even free. Certainly, it’s worth spending a little time to find the right tools so that you can make the paradigm shift for your business to operate at optimum efficiency and competitiveness.
Don’t be the last company standing … on the ground … looking up at the clouds and wondering what’s out there – because it’s all there for the taking right now!
Innovate For Change – Think Like A Social Entrepreneur
Why consider the social entrepreneurship model?
Social entrepreneurship is an exciting business arena that finds new, sustainable business solutions to long-standing problems. Social entrepreneurs see social challenges (such as poverty, homelessness, poor infrastructure or lack of quality education) as an opportunity for change.
This approach brings together the best that business practices offer and blends it with the best that civil society offers (a social mission, broader stakeholders involvement and the engagement of the community). By generating income from business activities and reinvesting its profits back into driving its mission, this approach generates both social value and economic value simultaneously.
Why consider the social entrepreneurship model?
1. Seeing social challenges as opportunities
South Africa’s social and structural challenges, from our poor ranking in health and education to the high level of unemployment, provide a myriad of opportunities for entrepreneurs that are willing to roll up their sleeves and work to build a better future.
The recent winner of the recent Nation Builder Social Innovation Challenge, Lungi Tyali, is a great example of this mindset.
Across Africa, there is a dire lack of provision for the electrification needs of the majority of the population, especially in rural communities. In South Africa, at present, there are 3.4-million households without a formal, metered electricity supply; 2.2-million in formal and 1.2-million in informal households. Lungi Tyali is the CEO of Solar Turtle who, with her business partner, James van der Walt, created a solar energy solution for rural and off-grid areas. Solar Turtle provides a solar-powered kiosk in a container that serves as a hub for renewable electricity. During the day, the solar panels are open to collect sunlight and at night they are enclosed and locked securely into the container.
Related: How To Be A Social Entrepreneur
2. Social entrepreneurship has low barriers to entry
Many of the most successful social enterprises start off small with an enterprising individual seeing an opportunity in their local community and building from this small beginning. There is no prerequisite for a university degree of formal training. Growing social enterprises can thus also offer employment opportunities to unskilled workers and youth without experience, addressing South Africa’s high level of unemployment.
One such story is that of Nonhlanhla Joye, the founder and facilitator of Umgibe Farming, Organics and Training Institute. Ma’ Joye, was diagnosed with cancer in 2014 and as a result, could not work to provide food for her family. She decided to grow organic vegetables in her backyard to feed her family. Unfortunately, the chickens ate all her vegetables and she had to come up with a solution.
She innovated a growing system using plastic bags. Before long Ma Joye was teaching other community members to use her growing system. A platform was born where poor communities started growing vegetables to feed themselves and collectively sell their surplus produce.
3. Corporate Social Investment, with purpose
Social enterprises also offer individuals and companies the opportunity to invest in lasting social change. Unlike traditional philanthropy, the impact of social enterprises has the potential to be much more lasting by directly providing affordable social goods and services, as well as employment opportunities.
Nation Builder, for example, is a platform* that brings like-minded businesses and civil society together in order to learn from each other and partner together for the greatest possible impact through wise and responsible social investing.
4. Personal actualisation
Perhaps the most rewarding advantage of being a social entrepreneur is the impact you can have on society, but this model also offers several personal benefits:
- working to solve issues you care about
- freedom to explore and create innovative solutions that can inspire change
- the opportunity to turn passion into profit
- working as your own boss.
Having The Perfect Product Isn’t Enough To Keep You In Business
The odds of the small business surviving aren’t stacked in its favour. It’s more likely to fail than succeed. That’s the bitter truth. However, once it’s able to shake off the niggling teething problems, watch it as it unfolds from a pupa to a beautiful butterfly.
There is a small bakery operates in my neighbourhood. It bakes bread; no cakes or other confectionaries. The best home-made bread that has your palates yearning for more. This is in sharp contrast with the bread produced by bigger bakeries. They also supply bread to the neighbourhood.
The bigger bakeries operate a model that is largely automated to the point that they lose a very important ingredient beyond flour, yeast and whatever goes into making bread. They lack the personal touch that gives it the home-made feel. This is why the neighbourhood bakery is preferred despite being pricier.
The small bakery isn’t without its flaws; avoidable flaws that may, sadly, sink the business. My view is more on the certainty of the demise of the business as observers would’ve noticed a slow yet steady decline in the output of the business. These flaws aren’t unique to the bakery, several other small businesses have share the same flaws.
Why would a customer who is willing to pay more for a product suddenly cease patronising the business. What other factor apart from higher price, in the absence of a drop in purchasing power, would make a customer buy bread of supposed inferior quality from the competition.
A couple of years ago when I moved to the neighbourhood the business was doing great. Even during a biting recession the shelves were always stacked with freshly baked bread of different varieties. Despite the excellent product on display, there was an unsatisfactory trend in the operation of the business.
For one, the sales personnel are rude. Having the right staff is necessary to grow any business, but when this very fundamental issue isn’t gotten right it will be fatal to the business. After all for how long would customers put up with poor service delivery in the face of stiff competition from bigger rivals.
Small business owners must realise that proper training of staff is as important as sourcing for capital and shouldn’t be overlooked as the survival of the business also rests on it. Bigger businesses in this regard always come out tops in comparison with their smaller counterparts.
Annually, big businesses spend billions of dollars on staff training for the simple recognition of the fact that having disgruntled customers, on account of poor service by personnel, is dangerous for business. Despite their size, big businesses tend to understand better the importance of the single customer. Also, how the discontent of a few customers can translate into poor sales which is detrimental to the business.
The mindset of a small business shouldn’t be different. Investing in staff shouldn’t be treated with levity to ensure the business not only stays afloat, but also grow it. Growing a business is in itself tough work, small business owners shouldn’t make it tougher by providing terrible service.
The neighbourhood bakery lacks this important feature and it’s been responsible for the steady decline in sales. I didn’t know the poor service rendered by the attendants had attained much notoriety until I was having a conversation with a group of individuals at a religious gathering and the issue came up. It’s a sad realisation.
For financial reasons small businesses aren’t known for recruiting the best personnel. Most employ the services of family members. While there is nothing wrong with this, it’s important to ensure such person is the best fit for the business. Employing family members may lead to a myriad of problems for the business. Therefore it will be in the best interest of the business not to employ an incompetent family member than have him ruin the business. This is a risky way of running the business.
The feeling of the customer towards the goods or services businesses provide is key to its success or failure. This is because customers can have the most unbiased assessment of the business rather than management and staff. Despite the poor service the bakery openly had on display, no one seemed to have bothered complaining to the owner of the business. So it may seem.
It will be in the best interest of a small business owner to leave an open channel for feedbacks from customers. This isn’t the case with the bakery and some other businesses face this challenge too which may lead to further problems.
The inability to provide an avenue for customers to channel their complaint to the proper individual creates a problem of inaccessibility. Accessibility happens to be an area of strength for small businesses because of their size. In larger businesses, despite creating channels for complaints there is usually no personal relationship between the owners and their customers. This is an area a small business shouldn’t be found wanting.
One would imagine that as a small business, the owner of the bakery should be easily accessible to interact with customers to in order to obtain feedbacks pertaining service and staff performance. This isn’t the case as the business clearly takes this important factor for granted. A lot of customers don’t know the owner of the bakery despite patronising it for years.
On paper the size of small businesses translates to easy accessibility. A closer look will reveal that the owners of small businesses tend to take a lot of things for granted. They fail to realise that they have to be consciously open to the idea and cultivate the habit of seeking feedbacks from customers. A small scale business has to maximise its potential for dynamism and flexibility. If it can’t take advantage of its unique qualities then it’s doomed.
There has been a reduction in the variety of bread baked and in addition to this is the equal reduction in the amount of bread on display generally. From observation it’s clear that patronage has taking a massive hit.
It’s painful witnessing the slow demise of a business with a good product due to its own failures. Having the perfect product won’t on its own keep the small business in business. The odds of the small business surviving aren’t stacked in its favour. It’s more likely to fail than succeed. That’s the bitter truth. However, once it’s able to shake off the niggling teething problems, watch it as it unfolds from a pupa to a beautiful butterfly.
Customers Are The Heart Of Innovative Businesses
Keep your customer at the heart of your business.
One of the main reasons start-ups fail is because they don’t create solutions that meet their customers’ needs. Failure is avoidable. Businesses that understand their customers feelings, challenges, expectations and motivations make themselves indispensable in highly competitive markets because they recognise that true innovation is led by customer insight.
An incredible example of a business that believes in innovation driven by insight is Netflix. They revolutionised the way people watch video content by listening to their customer’s needs. You’ve probably heard the story before: after paying a $40 overdue DVD fee, Reed Hastings co-founded Netflix. He was simply too busy to return his DVD. He recognised that this experience wasn’t exclusive to him, but that it was a problem that many people faced. He saw a gap in the market for receiving and returning videos more effectively, and that is how the $150 billion business was born.
If your start-up doesn’t fulfil a human need, then you’re setting yourself up for failure. It’s not enough to have a cool idea. Ask yourself, “What is the market need behind the offering?” and then test ways of delivering your offering in the most user-friendly manner. Talk to your consumers, understand their likes and dislikes and establish your business purpose before haphazardly allocating funds to R&D.
You can’t go from being a California based DVD-by-mail provider, to becoming the world’s largest online video streaming service without a business plan. It’s important to recognise the step-by-step process of success. Netflix didn’t go from delivering DVD’s to pouring capital into the production of video content within six months. That sort of development would have bankrupt the company almost immediately. It took 21 years for the business to become content creators.
- In 1999, the company became a subscription service because they found that customers preferred paying a monthly fee rather than making a once off purchase.
- Then, in 2009, the company used investor capital to expand their DVD collection because their clients wanted a larger selection of movies.
- In 2010, the business expanded internationally because they saw a gap in the market across various countries.
- Finally, in 2013, Netflix created its first original content series because customers craved fascinating content beyond the overused Hollywood archetype.
The point is: Progress didn’t happen overnight. The business had to set goals and objectives. They then had to fund their growth by presenting market opportunities, backed by customer insights, to their investors. Establish your start-up one step at a time and make sure every progression isn’t innovation for innovations sake – it must be inspired by a human need.
Netflix was founded by a computer scientist and a marketing director. While one partner focused on Netflix’ service development, the other focused on sales. Since the company’s origin, collaboration and balance have been the cornerstones of the business’ success.
Netflix is currently composed of a diverse team of tech-professionals and designers. They understand the importance of combining technology and design to offer customer-inspired user-experiences.
After conducting consumer research, Netflix discovered that series and movie artwork influences viewing decisions by 82%. This has resulted in the creation of more descriptive and provocative designs. Netflix is known for leveraging human-behaviour to revolutionise their service offering.
As an entrepreneur, you can increase your ROI by partnering with the experts that understand human-based innovation.
Keep your customer at the heart of your business.
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