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SA's mobile app economy on the rise

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 17 Jun 2015
The uptake of mobile per capita in SA is among the highest in the world.
The uptake of mobile per capita in SA is among the highest in the world.

Uptake of mobility solutions among businesses in SA is on a steep incline, thanks to a large - and growing - adoption of mobile devices and the opportunities this presents to leapfrog traditional methods of doing business.

This is according to chief technology officer of CA Southern Africa, Andrea Lodolo, on the back of a new global study by the firm that found companies are reporting "exceptional success" when they deploy mobile initiatives - a trend mirrored in SA.

Lodolo says, generically, the uptake of mobile per capita in Africa and SA is among the highest anywhere in the world and, despite security and educational challenges around the adoption of mobile apps, uptake is increasing.

Application economy

Local market watchers say, in a world where the application economy is looming and consumers routinely expect universal use from their smart devices, South African businesses cannot afford to disregard mobile strategy.

Today, says Lodolo, every company is - or has to become - a software company, regardless of the business they do. "More and more companies have realised that software and applications are a necessity and not a nice to have. So much so that many companies are bringing more software development in-house, even buying development companies to bolster their internal teams."

The application economy refers to the digital economy, or digital transformation that is fast becoming the next big disruption in IT, he explains.

ICT expert Adrian Schofield says, as South Africans' trust in the mobile environment increases, so will the percentage of business conducted through mobile devices.

Meanwhile, BMI-TechKnowledge analysts Brian Neilson and Clinton Jacobs say large South African enterprises already mirror their global counterparts when it comes to successful deployment of mobile strategies - rather than lag them.

In some cases, says Neilson, South African companies even lead in adoption - the country's financial services being a case in point. "Smaller companies in SA, in general, tend to focus on cost management rather than value chain innovation, with notable exceptions. This, too, is more similar than dissimilar to the global market."

Forging ahead

Key findings from CA Southern Africa's global study, "Mobility: Why your customers aren't satisfied and what to do about it":

1. 80% of European businesses implementing mobility initiatives have either already seen, or anticipate seeing, more customers using their software/services.
2. 77% are experiencing faster time-to-market for new applications and services.
3. 71% report an increase in customer satisfaction.
4. 28% of respondents have already adopted enterprise mobility.
5. 53% plan to adopt enterprise mobility in the next two years.
6. 41% of respondents will adopt mobile initiatives to keep up with/outpace competitors.
7. 41% will launch mobile initiatives to improve the overall end-user experience.
8. 34% see the adoption of mobility as a means of increasing brand awareness.
*The study was conducted online with 1 425 senior IT and line-of-business executives at enterprise organisations with revenue of at least $500 million.

While SA is - and has for some time been - a mobile country on the consumer front, business is catching up quickly, says Neilson. "There is definitely an industry push for mobile solutions, especially enterprise resource planning."

Schofield notes a mobile strategy goes beyond business-customer relationships. "It does not just enhance the relationship with the customers, it can also enhance processes and productivity within the business."

He says local companies still have a path to walk when it comes to the deployment of mobile solutions, but are making good progress.

"Mobile solutions need to be integrated into both the business model of the enterprise and into the buying habits of the customer, taking into account the variations in technology that exist at both ends of the relationship."

From the enterprise perspective, the challenge is being able to reach customers and potential customers through meaningful messaging and advertising without contravening the legislation and regulation affecting consumers' rights and privacy, adds Schofield. "From the consumer perspective, [it is] being able to receive desirable messaging and advertising but not spam - and avoiding wasting data costs on unwanted communications."

Lodolo says it is ultimately the user experience that will drive adoption. "Security is still the biggest concern to users starting to use mainstream applications [and] network availability and cost is also a hindrance, but I think once we get over the initial fears, and we feel more comfortable with mobile, the uptake will accelerate fast."

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