Intelligent CIO Africa Issue 24 | Page 46

FEATURE: DISRUPTIVE TECHNOLOGY ///////////////////////////////////////////////////////////////////// Looking to spur local growth, Prins Mhlanga, founder of fintech company Ocean on 76, says that South Africa needs to embrace a platform economy business model that is rapidly transforming the global economy. H aving evolved over the years, a platform economy is a new breed of digitally-driven, disruptive business models. The most distinctive characteristic of this new model is the ability to expand into new markets by simply making their platform available in those new territories. Well known platform examples include Uber and Airbnb and online stores operated by the likes of Apple, Google, Amazon and Alibaba. These platforms are the technology base that opens a whole new world of opportunities for retailers, musicians, software developers and private property owners so they can sell without creating their own online distribution channels. Their presence in South Africa is evidence that the model works here, but what is holding back local companies from developing their own platforms? According to a report released by Accenture and the Gordon Institute for Business Science, South Africa is far from ready for this. The country is ranked 14th out of 16 countries contained in the Accenture Platform Readiness Index and is expected to remain in that position through until 2020. Far from seeing this as a blow to the ambitions of companies building local platform businesses, this presents a rich opportunity for business leaders to accelerate their efforts. The study, Winning with Digital Platforms, says that 81% of the 3,000 plus respondents to the worldwide survey said they expected platform-based business models to be core to their growth strategy in 2018. And 27% said that digital ecosystems are transforming the way they deliver value. There is little doubt, therefore, that global businesses see this as a valid way to pursue growth and customers. South Africa’s low ranking is due to a lack of sufficient infrastructure, skills and economic growth needed to support adoption of this business model. The Accenture report says these factors have produced a scarcity rather than an abundance mindset in which commercial success delivers mutually beneficial results to all. This stumbling block, more than any other, will prevent South Africa from making a successful transition to an environment that supports a platform economy. What we need, rather than this insular view, is one which everyone can see and realise the benefits of co operation rather than outright competition. This might sound far-reaching, but it is a model we have been honing at Ocean on 76 Holdings and is also the subject of my doctoral dissertation. This work is aimed at SA business leaders could benefit from the power of a platform economy 46 INTELLIGENTCIO www.intelligentcio.com