Business
GREATER INVESTMENTS NEEDED TO UNLOCK POWER OF DIGITAL ECONOMY
By Dr Andrew De Vries , general manager , digital economy at The Innovation Hub
South Africa ’ s trouble is not a lack of innovation . It ’ s investment and support for entrepreneurs and small businesses that is the major stumbling block preventing the country from harnessing the transformative power of the digital economy .
Dr Andrew De
Vries , general manager , digital economy at The Innovation Hub .
The digital economy refers to connected services and devices which unlock new efficiencies and enable greater access to services for individuals and communities , including Internet of Things ( IoT ) technology , data and data analysis , artificial intelligence ( AI ), and machine learning .
While these technologies may be considered part of the fourth industrial revolution , the truth is that they are inextricably linked to a continuous digital revolution that began taking place before the term was coined , and that will continue well into the future .
Far from a “ nice to have ”, innovators and start-ups within the digital economy space are already solving the country ’ s most pressing economic and developmental challenges , from basic needs such as water , sanitation , and energy , to mitigating unemployment and enhancing local industry competitiveness .
As a case in point , The Innovation Hub ’ s Digital Economy unit recently ran an energy management pilot project in collaboration with a female-owned start-up , Concepts4.0 , at three foundries in Gauteng which aimed to demonstrate the power of advanced manufacturing interventions . Historically , the local foundry industry has been very traditional in its approach – a fact which has seen it becoming increasingly uncompetitive , forcing a rising number of foundries to close . But through implementing sensors and IoT-related technology to monitor , track and manage energy consumption , this project shaved a total of
R10 million from these foundries ’ respective annual energy bills , significantly boosting their economic viability and potentially saving jobs .
Another success story has been the eJoobi intelligent recruitment platform which draws on the power of AI and unstructured supplementary service data ( USSD ) mobile services to democratise access to employment opportunities and alleviate unemployment . To use the platform , all individuals need to do is upload their CVs onto the platform at an internet shop and from then on they can apply to jobs using USSD services , eliminating the need for a smartphone or data .
The Digital Economy unit alone boasts 120 such startups within our portfolio , each with the potential to leapfrog developmental hurdles and deliver outsized returns for government and private company investors . What ’ s missing in order to unleash the full might of the innovation ecosystem are persistent complaints such as seed funding , access to market opportunities , advisory support , and mentorship .
Notably , turning innovations into sustainable , commercially viable enterprises that contribute to the economy and create jobs means that ideas must be driven by demand to secure uptake of services or products . This in turn requires matching solution seekers with solution providers , and giving providers the seed funding and technical support needed to develop prototypes to demonstrate value .
To address this challenge , the Digital Economy unit currently runs an open innovation solution exchange programme known as OpenIX , which acts as a Cupid-like initiative matching startups and small , medium and micro enterprises ( SMMEs ) with organisations in the public and private sector . After receiving a brief from the client , potential service providers are invited to submit their proposals for evaluation , which are then short-listed and finally selected for funding for pilot projects .
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RACA Journal I July 2022 www . refrigerationandaircon . co . za