Ending The Crisis Of The Future Now Victor Okigbo November 2014 CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY Building.

Ending The Crisis Of The Future Now

Victor OkigboNovember 2014

CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY

Building Local ICT Innovation

Ecosystems: The Prospects and

Challenges

IDEA NIGERIAFORMAL PRESENTATION TO REVIEW GROUP–Conceptual Brief

ONFIDENTIAL DRAFT DOCUMENT PREPARED AS WORK IN PROGRESS FOR DISCUSSION PURPOSES ONLY

About this Presentation

Dates and statistics are subject to refinement and change

Formats and appearance have not yet been finalized

Any screen captures or concepts shown are based on the current revision of the solution and subject to change.

DisclaimerThis presentation contains preliminary information that may be changed substantially prior to final release of the associated paper.

The information contained in this presentation represents the current personal view of Mr. Victor Okigbo on the issues discussed as of the date of the presentation.

Any data sources not quoted will be given their due attribution in the printed version of this on-screen presentation.

Context: ICT & Development

$80Per Barrel

Currently, oil prices have fallen far below their prediction to a low of $80.52pb (WTI), which is expected to affect external reserves accretion and the CBN‘s ability to support the currency.

The US, a former major importer of Nigeria‘s crude, has ceased importation from Nigeria due to the production of its own crude.

SOURCE The Economist Intelligence Unit (EIU) CONFIDENTIAL DRAFT DOCUMENT PRESENTED AS WORK INPROGRESS FOR DISCUSSION PURPOSES ONLY

A staggering 113rd

out of 144 now 148 countries as measured by the WEF/INSEAD Global IT Readiness Index


Source: WEF INSEAD GITR Report 2013

Crisis In The Future Now


Source: Commonwealth YDI Report 2013

The combination of youthful populations with low youth development indicators points to multiple crises in the making.

EducationBusiness environmentPoverty levels

Peace/security

Governance


ResolutionStrong correlation between the five key factors and high levels of youth development. Improvements in each of these five factors can have a significant impact on youth development.

per capita income

Does not correlate strongly with YDI scores. Low income countries can make significant advances by providing young people with opportunities to seek quality education and training, and to participate in their country’s social, political and economic life. Hope and opportunity for 87% of the commonwealth.

Vision: Building Sustainable Software Businesses

Role models & Mentors

Shared Space & collaboration

Professional Assistance

Access to Capital

Monitoring & Evaluation

Support software development and creativity

We will utilize integrated best-of-breed approaches stimulate the establishment and

growth of technology-based startup companies and increase the number of successful

companies originating and developing in the area.

InvestmentNetworking

Feedback

Finance, legal, marketing and business

management

Business KPIs

Focus on KPI’s to track business performance and bring the missing business management skillset to the engineers and programmers who make up the core.

Market Access

Focus on helping members find the best route to market utilizing Go-To-Market Strategy, existing business networks, influence and experience.

Incubation + Acceleration

Focus on Business learning & Continuously expose member to targeted, targeted pitching opportunities with appropriate VC’s and partners

Focus Areas

Short-term: Next 6 months Long-term: 2013-2015

Risks Opportunities Risks Opportunities

Incubator demand

• Low awareness of incubator concept generally and IDEA specifically

• Inadequate local incubator management centres of excellence

• Novelty of incubator concept in local media (opportunity to generate top stories)

• Dev. community is over-represented in social media – easier to reach than traditional media

• Incubator successes/models around the world can be adapted to local circumstances

• Lack of depth of pipeline • Rising costs of basic infrastructure (premises, high speed internet, power) in Lagos Metropolis to drive traffic.

ICT market

• Weak demand for local solutions especially in enterprise

• Disruptive emerging technology – changing the application development landscape

• ICT solution competition from overseas

• Benchmarking against international standards

• Partnering with agile, forward leaning op

• ICT regulatory environment evolving to keep pace with technology changes

Socio-political environment

• Elections / Political stability• High software priacy

• Sustaining a robust and activist technology policy beyond current dispensation

• Unpredictable political environment. Uncertainty makes for poor planning

Macro-economic environment

• +ve conditions for Asian tech competitors

• Continued energy insecurity

Context Analysis: External Market Risks and Opportunities

10

Business KPI’s

Goal Setting for learning AND Business Devt.Focus on learning the right things

Testing against global standards

Availability of free ebooks, journals and groups

Online study programmes from MIT, etc

Key information is presented to the business owner in a

safe and learning conducive environment

Online study programs are curated and presented to

incubatees

Local and international expert

resources can concentrate efforts

on incubation centers

Interface with external parties and a broad network of advisers

and mentors

The Infrastructure Challenge OVERVIEW

INFRASTRUCTURE COSTS MUST REMAIN TIGHTLY CONTROLLEDThe overwhelming bulk of the opex of the incubation/acceleration centre is committed to keeping basic infrastructure functional.

It is incidental that his is immensely beneficial to the emerging companies which would otherwise struggle to meet the infrastructure costs that would otherwise stifle their businesses.

Salaries31%

Overheads23%

Internet Connectivity

27%

Rent (Lagos)17%

Events and Competitions3%

LAGOS SPEND BREAKDOWN

Salaries Overheads Internet Connectivity

Rent (Lagos) Events and Competitions

KPI Trend – Last Six MonthsPOSITIVE TRENDLINES – INNOVATION IN KPI TRACKINGIt is critical to determine meaningful metrics to judge and benchmark the performance of the startups with minimal income streams and even the performance of the incubation/acceleration effort.

Outside of deal size and number of exits (which are occasional datapoints), I advocate continuous monitoring and tracking of key variables. Increased followership on twitter (the primary social media platform preferred by our audience) as well as increased engagement (number of tweets and replies as well as the quality of followers reflect the influence and depth of engagement in the community. Tracking KLOUT scores may be a good project.

FEB MAR APR MAY JUN JUL -

200

400

600

800

1,000

1,200

1,400

Social Media (follow-ing)*


20

40

60

80

100

120

Number of Members


1,000

2,000

3,000

4,000

22 23 24 25 26 27 28 29

Diesel Used (Litres) and No. of Days Open

Diesel Used (litres)

Days Open

Market Access

Encouraging ICT Development through EntrepreneurshipCollaborations between the government and private sector can yield pragmatic development solutions offering cheap ICT services eg Techlaunchpad and IDEA-Nigeria

Meet the challenge of providing basic infrastructure

Critical dimensions for selection include leap-frog potential, span of

benefits, people-centricity and

innovation.

Example: IDEA-Nigeria is a highly focused on software development as part of it’s defining charter– other such hubs may focus on content, media or other

areas

The anticipated multiplied impact is that each successful business will generate 10 to 50 times the developmental

benefits of the initial investment

Encouraging ICT Development through EntrepreneurshipCollaborations between the government and private sector can yield pragmatic development solutions offering cheap ICT services eg DEMO Africa, NITDA, ICT Ministry and IDEA-Nigeria

Nigerian participation increased from a mere 4 startups in the previous edition to 15 startups in

the current edition

Example: DEMO AFRICA A Launchpad for tech startups and investors hosted

successfully in Nigeria for the first time with the invovelemt of NITDA and The

ICT Ministry

Up to 10 million USD is expected to be raised at DEMO Africa 2014 when the final reckoning is compeleted.

Incubation +Acceleration

Incubation ProgramINCUBATEE PRE-SELECTION MATRIX

RANK TEAM VENTUREFOUNDED SECTOR DEMOGRAPHICS MARKET SIZE (N)

1 PrepClass PrepClass 2013 EducationSecondary School and prospective university students (between the age of 10 - 21) N9 bn

2 Hutbay Hutbay 2013 Real Estate

Landlords, Landladies, Home buyers, sellers and renters, real estate professionals and mortgage institutions

$11bn contribution to the GDP; growing at 9.12% annualy, and a potential $350b mortgage sector.

3 Fitted Ideas Fitted Ideas 2011 Creatives 14-55 N750 mn

4 iQube Base* mediFIX 2014 Health all demograph groups N12 bn

5AimTech Nigeria

GigaLayer.com 2012 Web Hosting Nigeria / Africa N1 bn

6 VergeNgInspireSoft Ltd VergeNg

Inventory Management Small, Growing and Informal Businesses N100 bn

7Ideacentric Global Nerve

( Ideacentric-founded 31st Dec. 2010.) (Nerve - 2013)

Mobile Consumer Electronics - Digital content distribution

Our target customer is the mix of low-to-middle class individuals (Tier 1&3*) in the 15 to 35 age range. This customer in urbane, excitable& trendy. This customer group have a CPG (consumer packaged spend) limit of $90 and $250 respectively. This variation sits well with two debut Nerve smartphone models and can thus be covered via the same marketing efforts since both customer groups are equally aspirational and co-located in similar environments. (* see The Nielsen Research Report on “The Diverse People of Africa”) N192 bn (source Gfk, 2012)

*MediFIX has exited the program since selection

NOTE: We have selected a new cohort of incubatees (4 in total) – they will be signed on using the new terms (still under development). Two more candidates (VergeNG and IDEACENTRIC) are yet to be confirmed for the program.

Accelerator Group Beta MAR- JULY• 2nd GROUP. MAR-JULY

• March 16th – June 20th (13 weeks) DESIGN & BUILD STAGES

• June 22nd – July 6th (3 weeks break) BREAK FOR MID SEMESTER

• July 6th – July 27th (Final 3 weeks) FINALS: PITCH WEEK AND DEMO DAY

• August 3rd – September 15th GRADUATION / SELECTION BREAK BETWEEN GROUPS

Facilitators Professionals who have startup experience OR real-

world best-practice experience are selected for their appeal and ability to communicate effectively

Facilitators bring personal experience as well as their own take on the curriculum

• Alex Goma – Market Definition

• Adeola Tejumola – MR&I

• Steve Pore – Customer Development (Marketing, Loyalty & Brand Management)

• Steve Babaeko – Customer Development (Consumer Comms)

• Victor Okigbo – Team Build Out

• Bastian Grotte – Competitive Analysis

• Philip Salem/Tunde Kehinde* – GTM and Distribution

• Pius Okigbo – Pricing (software)

• Tani Fafunwa – Pricing (services)

• Femi Odewunmi* – Marketing (Positioning)

• Adefolu Majekodunmi* – Sales (Pipeline build)

• Folabi Esan* – Raising Finance 1

• Eghosa Omoigui* – Raising Finance 2

• Tomi Davies – Pitch Week Training

Key Lessons

KEY LESSONS

• IDEA to directly select ALL members and incubatee (no automatic selection from external programs)

• Provision of working capital is a key driver of sustainability but must be managed.

• Investment in startups is critical to successfully launch and sustainability

• Startups require go-to-market assistance as much as they require finance

• Timely provision of funding is essential at this early stage in the life of the incubation program. Delays can jeopardise the programs survival

Social Media: ImpactIndividuals• Create their own

content• Expose themselves to

online risks• Build and sustain

positive friendships• Have rapid access to

news and opinion• Exposed to

opportunities to exploit anonymity for fraud

Media• Traditional media losing

relevance with the younger demographic

• Convergence between media leading to hybrid media (eg advertising in online videogames)

IT Networks• Local networks and

infrastructure strained to the limit to deliver last-mile connectivity

• Rapid ramp up of broadband capability at the back-end

The homogenisation of youth culture results in reduced differentiation by culture and circumstance within the demographic – with the resultant consumption and generation of the same media using the same technology tools (watching Game of Thrones on tablets and tweeting about the season finale). Profound opportunities exist for innovative adaptations of globally tested formulations.

Transparent & granular monitoring & EvaluationIntegrated business monitoring and evaluation capabilities

Enables anomaly detection. Centrally managed analysis and policies based on aggregated information and hard research

All business progress is tracked and logged by

standarised assessment and monitoring tools

Correlation algorithms analyse venture and startup

data for patterns

Learning, Development, Networks and Media

+Response

How to Grow ICT Entrepreneurs

Defocus Technology – Focus on sustainable business

Fail, Kill and Break everything – Tough Love

Electricity & Broadband = half the battle

Local investment = half the battleSilicon valley will not invest in us if they don’t see us doing it for ourselvesIt’s amazing how basic the needs of some entrepreneurs are

TechLaunchpad + IDEA Nigeria and other initiativesTwo initiatives that respond well to the challenges of ICT development and youth empowerment

Initiated by the Nigeria’s current ICT minister.

A partnership of public and private sector interests.

Supported by technology majors academia, and private capital.

Engaging 6 out of 7 Youth Empowerment stakeholders

In Just over one year

100startups 12incubatees

with good to excellent prospects.

16weeks of intensive readiness training, pitch

preparation + monitoring and evaluation to go… 1 multimillion dollar exit


Youth entrepreneurship benefits Opportunities for self-employed youth as

well as the other young people they employ;

Bringing alienated and marginalized youth back into the economic mainstream and giving them a sense of meaning and belonging;

Addressing some of the socio-psychological problems and delinquency that arises from joblessness;

Helping youth develop new skills and experiences that can then be applied to other challenges in life;

Promoting innovation and resilience in youth;

Promoting the revitalization of the local community by providing valuable goods and services;

Capitalizing on the fact that young entrepreneurs may be particularly responsive to new economic opportunities and trends.

Youth Mainstreaming

• National youth development is often the sole responsibility of the government ministry or department where the youth portfolio lies, whereas youth issues should be mainstreamed across various sectors and line ministries such as health, finance, economic development, housing, justice, foreign affairs, education, and agriculture.

Context:

In Practice

Vision: Building Sustainable Software Businesses

Role models & Mentors

Shared Space & collaboration

Professional Assistance

Access to Capital

Monitoring & Evaluation

Support software development and creativity

We will utilize integrated best-of-breed approaches stimulate the establishment and

growth of technology-based startup companies and increase the number of successful

companies originating and developing in the area.

InvestmentNetworking

Feedback

Finance, legal, marketing and business

management

Business KPIs

Focus on KPI’s to track business performance and bring the missing business management skillset to the engineers and programmers who make up the core.

Market Access

Focus on helping members find the best route to market utilizing Go-To-Market Strategy, existing business networks, influence and experience.

Incubation + Acceleration

Focus on Business learning & Continuously expose member to targeted, targeted pitching opportunities with appropriate VC’s and partners

Focus Areas

The crisis of the future is… the opportunity of today

Thank You for [email protected]

Context:

In Practice

Resolution across various stakeholder groups

Source: Commonwealth Plan of Action for Youth Empowerment

Accomplishments Till Date & Programme Status

• The accomplishment till date and programme status is as follows

Incubation till CommercializationSelection ProcessProgram Planning

• Define Technology Innovation Programme

• Define Programme Scope• Define Topic/area of

boundaries • Identify and engage partners

Skill partners • Define eligibility criteria

Aspiring businesses Emerging businesses

(existing/old companies)• Define success criteria• Setup PMO and project

governance• Set-up decision making and

monitoring processes• Define and implement media

campaign strategy• Define Funding strategy

• Establish Selection Committee

• Implement Media/communication campaign and announcement of the bid process Radio Newspaper Media briefing by the

Minister Social Media

• Submission of bids by Interested candidates

• Review/shortlist bids by the selection committee

• Further screening including demo/face to face interviews to lead to identification of finalists

• Prepare incubation centers for selected individuals and Team

• Induct candidates into the incubation centers

• Assign mentors to successful candidates

• Mentoring of Finalists Fit for Purpose Solution by

CIOs Business management and

Entrepreneurship training by Fate Foundation, etc.

Technical/Standards training (including testing amongst others)* by Digital Jewel, Accenture, etc.

• Solution Standardization for Marketplace

• Presentation of solutions to stakeholders.

• Company setup

We are here

© 2013. Federal Ministry of Communication Technology

1 month4 months 6 months

Africania Computers

Industry: Oil and Gas

Name of Application: E-PUMP

Key Personnel: Ayodeji Ogundiran, Gabriel Ojomu, Adetiwa Olufemi

Brief description: Back-office real-time monitoring software for sales and operation of gas station. Provides real-time automation for

inventory mgt, centralized product price calculations, sales records, tank storage sales and volume dispense records, HR mgt., customer mgt., electronic data exchange with supplier for orders, delivery notes and schedules, and invoicing

Business Issue Software: Improves decision making process, brings about process efficiency

Is resolving and increase business profitability

Application Platform: .Net

Improvement Plan: Software currently built to collect data from the pumps. Plan is to build solution to do data automatic collection from fuel data from pumps

Completion Time Frame: 6 – 12 months

Income Source: Sale of software, training and annual License renewal

Total Automation

Category: Oil and Gas

Name of Application: Production Resource Planner (PRP)

Key Personnel: Paul Ugoji

Brief description: Real Time Production Resource Planner For The Nigerian Petroleum Industry. Provides avenue to capture main sources of data

generation on a typical oil producing facility: Well Test, Meter Proving, Daily Production Operation; Monthly Utilized Gas Calculation, Monthly Flared Gas Operation, Daily Well Status, Daily System Status etc

Business Issue Software: Provides platform for acquiring, storing, analyzing real time data to support

Is resolving and improve decision making process thereby increasing productivity and efficiency

Application Platform: VB, .Net & SQL server

Improvement Plan: Publicity via oil and gas exhibition, for a greater customer base


Income Source: Sale of software, annual License renewal, subscription fees

HexGEAR Technologies

Category: Oil and Gas

Name of Application: Oil & Gas Map

Key Personnel: Samuel Boham, Emeka Chika, Taiwo Adenusi

Brief description: Cloud based, Online, Real-Time, Collaborative, Interactive And Intuitive Oil & Gas Map of Nigeria. Explore Up To Date Info On Oil Block Concessions, Operators, Wells, Fields and Infrastructure All In One Location Via Your PC, Tablet Or Smartphone

Business Issue Software: Provides Oil & Gas companies, Investors and general public with

Is resolving information on Nigeria’s oil & gas information

Application Platform: VB.Net, SQL server

Improvement Plan: Publicity via oil and gas exhibition, for a greater customer base


Income Source: Subscription Fees

Klein Devort

Category: All Industry Sectors

Name of Application: Sociopilot (changing to an unnamed Payroll application)

Key Personnel: Shola Akinlade, Mayowa Okegbenle.

Brief description: A Social Media Automation tool created to help businesses manage their Social Media presence effortlessly and find

new customers. Provide platform for: Social media monitoring, Customer profiling and Lead generation

Business Issue Software: Allows for businesses to put their social media campaigns on autopilot (has Is resolving a built in algorithm (patents pending) that makes it easy to profile people and link them with a company's products


Improvement Plan: Integration with whatsapp, BBM, Instagram.


Income Source: Subscriptions from brands

i-SEC

Category: Financial Services

Name of Application: i.Sec

Key Personnel: Kayode Disu, Adebola Segun, Peter Ekunkoya & Telema Synger

Brief description: An authentication service that enables you to authenticate transactions on your bank account before your account is debited using your mobile phone.

Business Issue Software: Unlike traditional SMS debit alerts and SMS OTPs for approving online

Is Resolving transactions, i.Sec offers strong token-less 2 factor authentication via an IVR call to the customer who simply listens to a voice prompt and approves with his/her Strong-pin on the mobile device


Improvement Plan: PCI Complaince- Payment Application Data Security Standard,

Proof of Concept with two Nigerian financial institutions & NIBSS


Income Source: Licencing to the financial institution and (or) switch, Registration fee to the customer and Monthly or transaction fee to the customer

Pawaak Technologies


Name of Application: Microfinance Payment Processor (MPP)

Key Personnel: Felix Onyema, Olawale Bakare & Prasad Harischandra

Brief description: Microfinance banked platform based application for microfinance account holders in Nigeria. It inter-operates with banks payment interface and intra- communicating with switch payment servers and/or aggregators. Assists account holders to make easy mobile transactions such as – payment for purchase of goods; funds transfer to and fro microfinance/commercial banks and point of sale service

Business Issue Software: Provides mobile platform for microfinance transactions

is Resolving

Application Platform: Java

Improvement Plan: scale up product to cater for larger audience, Advanced Security features


Income Source: Charge Fees per Transaction

Prowork Technology

Category: All

Name of Application: Prowork

Key Personnel: Francis Onwumere, Opeyemi Obembe & Ernest Ojeh

Brief description: A Mobile Enterprise Solution For Project Management and Collaboration. It is accessible via mobile phone, the web, and has a robust API to allow developers to extend its functionality. Large organizations can deploy the Enterprise version. It is also offered in a software as a service (SaaS)

platform.

Business Issue Software: Provides collaboration platform for effective Project Management across

is Resolving different improvised media (email, sms, spreadsheets, google docs, etc)

Application Platform: Multiple (Mobile, Web, API)

Improvement Plan: Extending business value via business intelligence features


Income Source: Software sale, Yearly licensing, Fees from providing SaaS

Tedata


Name of Application: EstocksMgr

Key Personnel: Engr Lawrence Ajayi, Olatunde Ogunlade, & Olanrewaju Sanni

Brief description: An Electronic Capital Market And Investment Manager that assists Asset Managers, Portfolio Investors and Market Researchers in their decision making fostering profitability when deployed. EstocksMgr promote investor's interest in the capital market while providing full access to analytical data and charts.

Business Issue Software : Provides traders and investors will have good technical tool for analyzing is Resolving and managing their investment

Application Platform: Dot net, SQL server

Improvement Plan: Web Enabled, real time Life feed, inclusion of personal investment portfolio module

Completion Time Frame: 6 – 12months

Income Source: Sale of software, yearly licensing fee & subscription fees for online users

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