Monthly Archive for October, 2009

Mobile Web Rising in Kenya.

Some interesting Internet usage research findings for East African cities we’re announced this past week by TNS Research International. The research found that Kampala in Uganda has the highest level of internet usage with 53% of the population there being online. Nairobi in Kenya and Arusha in Tanzania are tied at 49% usage whilst Dar Es Salaam in Tanzania has 31% usage. In Nairobi, the research findings also indicate that Nairobi in Kenya that 31% of the population uses the Internet on a daily basis and 49% use the Internet weekly whilst 20% use it often.

Also in the news this week is that apparently 45% of Internet users in Kenya access the Internet via their mobile phone. Is that really possible? This would imply that if Kenya has around 4 million internet users in total (currently) then approximately 2 million Internet users are doing so on their mobile. Having attended the Mobile Web Africa Conference in South Africa earlier this month, what came out repeatedly in a good number of speaker presentations is that Kenya is one of the major mobile web countries in Africa in terms of growth and overall usage. This is something that I have repeatedly noted in a good number posts on this blog.

So, going forward, if the mobile web is already experiencing major growth in Kenya, what exactly are we doing to take advantage of this new reality? One thing is for sure, most of the mobile web sites that are heavily trafficked in Kenya and the broader East African region are NOT local. More specifically, some mobile web sites that dominate East African usage are Twitter, Faceboook and Wikipedia (See Opera Software’s State of the Mobile Web for Africa here). However, as far as I can tell, a good number of Kenyan organizations do not have mobile web sites as yet. However, its good to see that the Daily Nation has a mobile web site at http://mobile.nation.co.ke as does the East African Standard at http://www.eastandard.net/m.

Although it will take time for Kenyan organizations to take advantage of the mobile web, I am pleased to note that two mainstream companies have already made the mobile web leap! The first is Kenya Airways (KQ). Earlier this week, it came to my attention that they launched a KQ mobile web site at http://www.kqwap.com. I don’t why they didn’t register a more suitable domain name like kqmobile.com or kenyaairways.mobi but they do get the general idea spot on!. More specifically, the KQ mobile web site channels both information and services such as flight status, flight schedules, contacts, press releases, baggage, careers, and special offers.

The other Kenyan business that has created a mobile web site is CFC Stanbic Bank at http://www.cfcstanbicbank.mobi. The mobile web site was developed by a South African digital agency through Standard Bank who are CFC Stanbic Bank’s majority shareholders in Kenya. The CFC Stanbic Bank web site provides information and services such as their profile, bank accounts and investment services, calculators for loans, sports sponsorships, competitions, branch locations and contact information.

In conclusion, it looks like the Kenyan mobile web is indeed taking off and its only a matter of time before every business in the country will need to  consider having a mobile web site if this is where the market is clearly headed. In related news this week as well was the launch of Safaricom’s Kes. 200.00 unlimited daily bundle and Orange Kenya’s new low rate of Kes. 1.00 per megabyte on their Kes. 3,900.00 monthly bundle. Its (gradually) getting even cheaper to get online via the mobile networks’. Indeed, the mobile web is rising in Kenya!

Kenya on track for top 10 Opera Mini country ranking.

Opera Mini is the world’s most popular mobile web browser with over 30 million active users as of this writing. Every month, Opera Software, the makers of Opera Mini, conduct the definitive analysis of key trends affecting the mobile web worldwide. These findings are aptly named “the state of the mobile web”. Each report provides the most frequently visited sites, key data metrics from Opera Mini and a snapshot of a specific trend chosen by the analysis team that month.

In the report for August 2009, one of the most interesting findings is that the fastest growing countries (for Opera Mini usage) with double-digit growth percentages between July and August 2009 are Australia, Georgia, Vietnam, Kenya, France, Philippines, Brazil, Kazakhstan, Pakistan and Malaysia. Yes indeed! Kenya is right up there with these far more developed countries. More specifically, Kenya currently ranks 14th and has been climbing fast by growing 19% in usage between the months of July and August 2009. Incidentally, this torrid growth happened prior to the the recent go live of the SEACOM and TEAMS high speed undersea cables. However, in the same period, Kenyan mobile operators Safaricom and Zain have been aggressively pushing data bundles that have made the Internet massively more inexpensive, ubiquitous and accessible throughout the country.

Reinforcing the trends from the Opera report, a recent media story stated that Safaricom, the only 3G network in Kenya, has seen data usage on its network grow by more than 200% since the SEACOM cable went live. At the same time, in a recent report from the Communications Commission of Kenya (CCK), internet usage growth in Kenya is largely being driven by the mobile operators since approximately 130,000 mobile internet subscribers got connected between the months of March and June 2009. The reality therefore going forward is that the mobile web in Kenya is definitely going to be one of the biggest African ICT success stories in the coming year(s). Its definitely time for us to fasten our seat belts for this ride!

Morgan Stanley’s Mary Meeker predicts the Mobile Internet future.

Mary Meeker’s Internet Presentation 2009

KDN’s Bandwidth Wagon and KCB’s Mobile Wallet.

The last couple of weeks have been quite busy with travel and work so I’ve literally had no time to blog (shame!). On the travel side, I was in South Africa’s Johannesburg City last week for the inaugural Mobile Web Africa Conference which was a real eye opener for me (I’ll be blogging more on this event over the weekend for a full round up of what was interesting there).

So, just to get the weekend going, there are two really interesting developments in Kenya’s ICT landscape this week. The first is that Kenya Data Networks or KDN as they are popularly known have announced this week that they are quadrupling bandwidth to their clients for the same price. This is really interesting since a couple of months back both AccessKenya and UUNET had doubled bandwidth to their clients for the same price but KDN as effectively gone a step further and they are bound to unleash a bandwidth war of sorts. At the end of the day, what remains to be seen is if the other players in the marketplace follow suit and we can finally have the benefit of much faster bandwidth at lower prices since the SEACOM and TEAMS undersea cables went live.

In other news this week and what is clearly a counter move to Safaricom’s M-Pesa and Zain’s Zap money transfer services, Kenya Commercial Bank (KCB) is set to launch a mobile wallet service early next year. The service from KCB is interesting in that one does NOT have to be a KCB customer to access the service and will only require a mobile phone on any of the Kenyan mobile networks (initially). The other interesting aspect of the KCB mobile wallet is that it will be available not only in Kenya but also in all the countries where KCB currently operates including Tanzania, Uganda and Southern Sudan.

The KCB mobile wallet will also interface with Safaricom’s M-Pesa service meaning that users will be able to top-up or withdraw funds from their M-Pesa accounts to their KCB mobile wallets and vice versa. Finally, the limit for money transfers using the KCB mobile wallet will be Kes. 100,000.00 which is higher than the limits currently offered on Zain’s Zap and Safaricom’s M-Pesa services. In a nutshell, KCB is proving that its not only the largest bank in Kenya but possibly the most innovative too by fully embracing the mobile money channel instead of fighting it!

Mobile Internet Usage Surges In Kenya.

It was reported in the Business Daily Newspaper last week that Mobile Internet usage in Kenya is now surging forward compared to wireless or other more traditionally delivered forms of Internet access. According to the statistics from the Communications Commission of Kenya, mobile Internet subscribers stood at 1,674,948 in March 2009 and they grew rapidly to 1,801,876 inJune 2009. This means that more than 200,000 new mobile Internet subscribers signed up in a period of only 3 months (Internet Service Providers, are you reading the writing on the wall?).

At the same time, in the period between March 2009 and June 2009, total wireless subscribers including mobile Internet subscribers grew from 1,704,948 to 1,814,183 subscribers. This would imply that wireless Internet users in Kenya generally prefer mobility to being in a fixed location. Lastly, The total number of Internet subscribers in Kenya on all modes of connectivity grew from 3,409,896 in March 2009 to 3,648,406 in June 2009. In a nutshell, Individual users as a market want mobile, fast, reliable, cost-effective and ubiquitous mobile Internet in Kenya! (Internet Service Providers, I ask again, are you reading the writing on the wall?).

These statistics go to show that the largest growth area for Internet usage in Kenya is the mobile Internet. This space is largely dominated by the major mobile networks including Safaricom, Orange, Zain, and YU. If these trends are indeed a precursor to the imminent future of Kenya’s Internet space, it would seem that Internet Service Providers, Cyber Cafes and other conventional Internet connectivity businesses are going to take a very big hit in the coming year(s). Its time for them to disruptively rejig their business models because things are certainly not looking bright for them!

How To Build A World-Class Business Web Site.

Building a world-class business web site is no mean feat. In fact, it could be said to be rocket science when you consider all the variables and disciplines that have to be engaged to build a truly engaging and world-class business web site. Building a web site can be one of the most frustrating and arduous tasks today within a highly competitive and global marketplace. How can you ensure that you have a web site that is visually stunning, branded, marketed, dynamic and interactive? Unfortunately, on many occasions in Africa, web sites are usually treated as a non-strategic exercise, best left in the hands of ICT and Marketing  departments. There is also a trend whereby web sites in Africa tend to be “out of sync” with other traditional marketing and communications used by the enterprise. Its also not uncommon that these web sites are neglected once launched, thereafter displaying content that can be months or years out of date.

So, if you want to build a world-class business web site based on today’s trends and best practices, what is required? As mentioned earlier, there are indeed many variables and one size does not fit all. Each organization has unique requirements when it comes to developing a web site. The most critical factor is to begin with the end in mind and ensure that the core business strategies support and drive the web strategies. This is indeed the starting point and requires the most senior levels of executive management to participate. Its by asking the hard questions and ensuring executive commitment that a web strategy can be formulated. The web strategy should be business-driven with objectives such as growing sales, building brand, improving customer service or streamlining processes.

Once a web strategy has been defined, then the specific tactics to be employed can be reviewed. In building today’s world-class business web site, there are a myriad of possibilities. However, content should be top of mind as this will drive what goes onto the web site. This is more than simply re-purposing company profiles, brochures or media content. Its about generating and editing content that will be specifically targeted to the different people you expect to visit your web site. These segments could include customers, investors, distributors, retailers, suppliers, the general public, students, etc. Each user group has different needs and as such content needs to be developed accordingly. If a content strategy is not ;well defined at the very start then the web site will fail to “click” with the target user groups.

The next step is identifying strategic partners who will be required to execute the web site. This requires establishing the competencies and skill sets within a firm or a consortia of firms who can deliver on the requirements. This is not easy as building a world-class business web site is a multi-disciplinary exercise that may require business strategists, programmers, information architects, copywriters, creative designers, photographers, illustrators, animators, producers, internet marketers, etc to all work together. Its best to use case studies and client references to identify the firm or consortia who can deliver on the requirements.

What follows is defining the scope of work. This includes specifics such as branding, content development, internet marketing, back-end technologies, etc. The scope of work will determine the time line for the web site’s execution, which is best mapped to a project schedule which clearly defines all deliverables, tasks, and responsibilities. A key factor for success is that inputs are received in time, in the right quality, and the right quantity. Another major factor is that of scope creep where a web site project starts with certain agreed outcomes that then change as the project progresses, as a result of “new ideas”. Scope creep is often due to the intangible and flexible nature of the Internet medium. You never really complete a web site -  its always  work in progress.

Once a web site is built, there are two final issues that need to be addressed. The first is that of internet marketing. A web site can be built flawlessly but it needs to have an audience to generate value for your organization. In order to do so, one has to develop and execute an internet marketing program that would realize maximum visibility with target groups. This can include search engine optimization, social media such as Facebook and Blogs, display ads on popular domestic or regional media web sites, pay-per-click ads such as Google Adwords, etc. Internet marketing can be highly targeted using keywords, geographical target, demographic targeting, etc so as to achieve a maximum return on investment (ROI).

The second often overlooked issue once a web site is ready is that of content management. A web site is meant to be highly dynamic and current. This requires either a dedicated resource within the enterprise or a third-party to manage content on the web site. The most practical way to do so is using a content management system or CMS for short. A CMS is basically a software that is used to build web sites as well as manage their content in user-friendly manner without having to acquire highly technical skills. A good CMS also forms the foundation of a scalable web site since it can be extended to incorporate additional functionality later on such as blogs, email marketing, e-commerce, discussion forums, etc.

This article I wrote was first published in the October 2009 edition of Management Magazine, a monthly publication from the Kenya Institute of Management.

5 Reasons Why Every Organization Needs A Corporate Blog.

The main purpose of a corporate blog is that is provides a direct and less formal communication for the organization with its current and prospective stakeholders. Corporate blogs also create the impression that your organization is open and responsive. Here are five reasons why corporate blogging for any organization is a great idea:

  • Expert Positioning – Many popular blogs are the ones where the blogger is an expert on the topics he/she writes about. This is a specific niche in which the blogger has a wealth of knowledge. Therefore, a corporate blog can be used to communicate expert advice and industry information on specific topics.
  • Corporate Social Responsibility – A blog can be used to highlight the corporate social responsibility activities within your organization. This demonstrates that your organization is conducting business in a responsible and community supporting manner.
  • Reputation Management – It is possible for anyone to post positive or negative comments about your organization online. A corporate blog acts as an avenue for your organization to manage its reputation online by being able to respond accordingly.
  • Conversations – Blogs, by their very nature, are interactive. Bloggers make posts and readers make comments. Therefore, blogger and reader become part of a conversation. For the corporate blog, its a powerful opportunity for all stakeholders to communicate directly with each other.
  • Marketing – A blog can be used as a marketing or brand building channel. More specifically, many corporate blogs are connected to social media such as facebook and twitter and as such content from the blog is syndicated to them. This in turn creates a marketing outlet for your organization with stakeholders.

These tips were first published in the October 2009 edition of Management Magazine, a monthly publication from the Kenya Institute of Management.

Here comes SEATEAMS. Now, what next?

Some years ago, it was very popular for the world’s leading tabloids to name a celebrity couples by combining their first names. This lead to the likes of Brad Pitt and Angelina Jolie being referred to as “Brangelia”, as well as Ben Affleck and Jennifer Lopez being called “Bennifer”. Well, I’d like to do my own take on the news this week that the TEAMS high speed undersea cable has finally gone live in addition to SEACOM which has been operational for the last couple of months – I think the two could be referred to as “SEATEAMS”. SEATEAMS will eventually have a combined bandwidth capacity of approximately 2.5 Tb/s!

Now, in the aftershock of SEACOM going live and no price reductions in sight as yet for Internet end-users, even as wholesalers have seen bandwidth price reductions of as much as 90%, no one is particularly brimming with joy that SEATEAMS has gone live. Yes, the Internet is indeed faster these days in Kenya for the same prices we have been paying to-date but the high expectations in the market are far from being met. At the same time, even as we expect SEATEAMS to force the Internet Service Provider (ISP) community to lower their prices (at least somewhat), there is the argument that the investments required to “go live” on the cables are indeed substantial. No one should reasonably expect broadband Internet costs to drop off over night, even if the Kenyan Government presses for price controls, as they have already suggested they may do. Its going to possibly take at least 2 to 5 years before we see really inexpensive broadband Internet at our fingertips.

Going forward, it will be interesting to see where SEATEAMS will be in a year’s time in terms of Internet speeds, reliability and pricing. What will be even more interesting is when SEATEAMS is joined by the EASSy and LION undersea high speed cables within the next couple of years. SEATEAMS will then evolve into “SEALIONTEAMSy” Its hard to imagine that Kenya will be able to consume all of that deliciously fast Internet bandwidth, which makes one wonder if the investors behind the cables will be able to recoup their massive outlays within a reasonable period of time. The challenge for the market in Kenya will be to find useful and value adding applications of this overflowing bandwidth and make sense of the high speed cables. I certainly hope this will actually happen, and live up to the never ending broadband hyperbole we have been subjected for the last year or so.